The ACD Method

Quote from Maverick74:

Did you guys know that IBB is sitting right at it's all time high? IBB is the biotech ETF.
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Don't typically look there because of headline risk, but makes sense when you consider the patent cliff that was faced last year/this year in the health care industry. In order to off-set, bio tech should have a good year of innovation to fill the loss of patents.
 
AVP should be on your radar screen just sayin...........:)

Mav great article about Peter Brandt, its insane how many great traders came out of Commodity Corp.
 
NG is putting in a failed weekly A down for me here. I don't buy weekly swings on Mondays, so I'm passing for now, we'll see what we get tomorrow.
 
Quote from sarue:

Although the number line is relatively strong, it may not be indicative of a strengthening market when so much action takes place overnight and we see these large gaps.
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So here's an example of what I see. My SPY 5 day cumulative number line on May 1 was +4. Today it's +3. In that time the SPX has dropped from 1405 to 1338. The decline is happening overnight on European news with little day session followthrough. The weekly number line would do a good job of capturing the damage, but the daily isn't.
 
Quote from sarue:

So here's an example of what I see. My SPY 5 day cumulative number line on May 1 was +4. Today it's +3. In that time the SPX has dropped from 1405 to 1338. The decline is happening overnight on European news with little day session followthrough. The weekly number line would do a good job of capturing the damage, but the daily isn't.
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The numberlines can't just be used in isolation, you have to look at everything right?

So what I do is for intraday trading and short term swings I keep track of the 5 day rolling numberlines and where something is trading relative to the weekly levels. As of right now most things are right in the middle of their opening ranges, but you have financials selling off to the the weekly a downs...so I will discount the number line action if it isn't representing that action.

IMO I should already have a very good idea of the price action, the numberlines, weekly and monthly levels just help to define and track price action!
 
Quote from Shanb:

The numberlines can't just be used in isolation, you have to look at everything right?

So what I do is for intraday trading and short term swings I keep track of the 5 day rolling numberlines and where something is trading relative to the weekly levels. As of right now most things are right in the middle of their opening ranges, but you have financials selling off to the the weekly a downs...so I will discount the number line action if it isn't representing that action.

IMO I should already have a very good idea of the price action, the numberlines, weekly and monthly levels just help to define and track price action!
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Thanks Shan, I get your point, all data is contextual and must be considered in light of the full view and not just one data set. It makes great sense to balance the daily with the weekly for current circumstances.
 
Quote from sarue:

Thanks Shan, I get your point, all data is contextual and must be considered in light of the full view and not just one data set. It makes great sense to balance the daily with the weekly for current circumstances.
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Number lines are all about relative value. As Shan said, you have to look at everything. I use a 30 day rolling for trend, 5 day rolling for momentum and a static monthly. All used for relative value purposes.

FWIW, my 5 day number lines were negative going into this last leg down.
 
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