The ACD Method

Quote from kinggyppo:

it looks like you are mixing time frames. If you're opening range is 45 minutes then you want to take the average true range for that time frame. You are trying to discern what the range is over time for the 45 minute blocks of time to create a ups or downs. Looks like oil broke up right out of the gate. It looks like it made an a up on the shorter time frames.
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I am using the vanilla 8:30-9:15 OR for CL, as well as A / C values (8 / 13-ticks). The requirement for a valid A is for price to trade "at or beyond" that level for 1/2 of the OR duration, ie. 22min for the 8:30-9:15am OR.

What I am trying to get clarification on, is what "at or beyond" means in practical terms, when there is one (or several) pullbacks that cross that A-level.
 
Quote from mfbreakout:

Per my RULES, failed A down. Tha's why i went long at 98.32. We need to be aware of support levels.

My definition of clean A down or A up - since MF method is primarily a breakout method- I do not want price to touch or come into OR.

Even if we had an A down confirmed at 98.38, I will not be initiating a new position for shorts there. Too close to support.

After confirmed A down, even if price moves into OR, i will be looking for shorts at resistance and one of key resistance is OR high of 99.33 , as an example.

On a side note, traders who trade breakout set up use OR of like 5 or 10 minutes. Narrow OR for breakouts , wide OR (like i use 45 minutes OR) for fades . So, traders using 5 minutes OR, have an A down and they got nice ticks 10 minutes after 9 am open on shorts.
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Thanks! your definition of clean A is quite stringent, but it certainly allows to identify the strongest directional opens.

Thanks also for the reminder of narrow vs wide OR depending on the application.
 
Quote from kinggyppo:

what was your timeframe on the failed a down. Dom993 mentioned like 4 frames. I think he was using the daily a down as a reference and possibly trying to enter on a lower frame like ten minutes, that is fine as long as you know the uncle point otherwise a recipe for disaster. Mav has said before and I agree that you have to be careful otherwise it is easy to let bias enter in. For example you can justify staying in a breakout trade that is clearing going against you because the longer time frame shows breakout. I think that the rule about an A up being half the time frame is about trying to keep traders from being "deer in the headlights" with a losing trade. I wonder how many times that happened, LOL!
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i use 45 minutes 8.30 am to 9.15 am. 2 cyan lines on all my charts show OR. eastern time.
 
Quote from dom993:

I am using the vanilla 8:30-9:15 OR for CL, as well as A / C values (8 / 13-ticks). The requirement for a valid A is for price to trade "at or beyond" that level for 1/2 of the OR duration, ie. 22min for the 8:30-9:15am OR.

What I am trying to get clarification on, is what "at or beyond" means in practical terms, when there is one (or several) pullbacks that cross that A-level.
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based on your definition here the mkt made an A up. In the book he says if an A up is made you "would establish a long postion/bias". I think it depends on how strong you feel about the move. To me the move in crude was strong off the open, so I would have taken the trade based on price action. Also, in the book he says there is only one A up or A down per day.
 
Quote from dom993:

I am using the vanilla 8:30-9:15 OR for CL, as well as A / C values (8 / 13-ticks). The requirement for a valid A is for price to trade "at or beyond" that level for 1/2 of the OR duration, ie. 22min for the 8:30-9:15am OR.

What I am trying to get clarification on, is what "at or beyond" means in practical terms, when there is one (or several) pullbacks that cross that A-level.
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This is just me but multiple pullbacks across a level that don't meet the time requirement I would consider a fail. It needs to decisively cross the A/C level and stay there, not just pierce it off and on throughout the day and cumulatively meet the time requirement.

I'm looking for price to have the balls to take out a level, not just tickle it.
 
So TLT made an A down intraday (116ish), but is sitting right around the monthly A down (116.20ish).

Looks like SPY made monthly A up few days ago.

Taking no action right now. Waiting to see how TLT and SPY turn out end of day today and maybe pull the trigger tomorrow.
 
Quote from Quon:

Kinda feels like this market is crapping out. No one came back from lunch.
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aapl, yahoo amd on deck to report so I expect quiet till then. You can scalp the QQQ after aapl reports. They usually report late though. :)
 
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