Most of the gold in the world is traded on the LME (London Metals Exchange) and yes, that means using London hours. I suspect the best time to trade gold is also 2am to 7am. And again, I would use an OR based on when I traded it.
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The ACD Method
- Thread starter sbrowne126
- Start date
Most of the gold in the world is traded on the LME (London Metals Exchange) and yes, that means using London hours. I suspect the best time to trade gold is also 2am to 7am. And again, I would use an OR based on when I traded it.
Quote from Maverick74:
Most of the gold in the world is traded on the LME (London Metals Exchange) and yes, that means using London hours. I suspect the best time to trade gold is also 2am to 7am. And again, I would use an OR based on when I traded it.
Thanks. Any one commodity you like ? I dont like equity indexes all that much ? Maybe individual equity is interesting, but like the leverage of Fut's.
Quote from optionbull:
Thanks I was thinking of looking at volume clusters for some clues. So CL can begin at 900 am EST , seems late in the morning
As Mav has pointed out, there are many aspects to oil, ie physical, Brent, CL, spreads. I can't tell you anything about the other contracts, though I have heard of folks who prefer to trade Brent.
If you want to trade CL specifically, then you can see the active months here;
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_quotes_settlements_futures.html
Attached also a PDF showing session ranges for European open to pit open, and pit open to pit close. I only track these 2 sessions as that is where the bulk of the volume is. If memory serves me the Asian session accounts for about 4% of CL daily volume.
Edit/Note: Until a couple of months back, data was Rithmic via Sierra Charts, now it is IB via Sierra Charts. IB data has its limitations so I do not expect it to be tick perfect, but enough to give an idea.
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Quote from Maverick74:
Most of the gold in the world is traded on the LME (London Metals Exchange) and yes, that means using London hours. I suspect the best time to trade gold is also 2am to 7am. And again, I would use an OR based on when I traded it.
Actually Mav I don't think that is right re Gold and LME. The LME does some clearing for OTC gold trades and helps on the Gold fixings but I don't think they actually transact physical gold at all.
I know from about 2006 onwards, Gold futures volumes started to overtake physical gold volumes and here in London some of the banks that traded physical gold interbank or with their customers offset/hedged primarily with futures on CME/Comex and managed the basis / delivery risk. Physical gold prices on the platforms were largely based on the futures as well.
I don't know if that is still the case but it was up to 2010. I don't have an exact break down of volumes OTC versus futures but I suspect futures is still larger than OTC.
I use an opening range 7.30 am - 8.00 am for Gold, same as European currencies. It suits me.
Quote from optionbull:
excellent point Mav. Thanks
thoughts on Gold..... with repspect to same... Opening Range time . etc . ?
Don't know anything about gold, never traded it, can't tell you about session volumes.
I do have a limited amount of session high-low data for the GC futures contract. It is so easy to use the same template in Sierra Charts to collect the data that I do so in case I may want it in future, so here it is.
Same comments about Rithmic/IB data apply.
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Quote from justrading:
Don't know anything about gold, never traded it, can't tell you about session volumes.
I do have a limited amount of session high-low data for the GC futures contract. It is so easy to use the same template in Sierra Charts to collect the data that I do so in case I may want it in future, so here it is.
Same comments about Rithmic/IB data apply.
Thank you.
What drew my attention to this method is the statistical aspect of the OR.
Now since the OR were older when he ran the numbers, what is the OR today , then further for each commodity. Doesnt look like the MBF team still does the OR stuff
Quote from optionbull:
Thank you.
What drew my attention to this method is the statistical aspect of the OR.
Now since the OR were older when he ran the numbers, what is the OR today , then further for each commodity. Doesnt look like the MBF team still does the OR stuff
The OR didn't go anywhere. You can't remove the OR. You need it to derive your A values. You just have understand we live in 24 hour markets now. So you have to focus on the slice of the trading day that you want to trade. I'm pretty sure Mark still puts out his data.
Quote from Maverick74:
The OR didn't go anywhere. You can't remove the OR. You need it to derive your A values. You just have understand we live in 24 hour markets now. So you have to focus on the slice of the trading day that you want to trade. I'm pretty sure Mark still puts out his data.
I am ok with figuring the OR now, everyone has had some good insight. We could all end up with slight different number lines though ?
Now with respect to the 30 day cumulative ACD vs. 12 day or even shorter, do you have any experience or preferences ?
Thanks
Quote from optionbull:
I am ok with figuring the OR now, everyone has had some good insight. We could all end up with slight different number lines though ?
Now with respect to the 30 day cumulative ACD vs. 12 day or even shorter, do you have any experience or preferences ?
Thanks
OK, these are two completely different questions. The levels you use for actual trading and the levels you use for your number lines. For your number lines, use the pit open hours.
I use the shorter number lines for momentum. They complement the longer term ones when they reach extremes.
Quote from Maverick74:
OK, these are two completely different questions. The levels you use for actual trading and the levels you use for your number lines. For your number lines, use the pit open hours.
I use the shorter number lines for momentum. They complement the longer term ones when they reach extremes.
Thanks.
The number lines are calculated based on what sort of day it was (ACD values) +4/-4 +2/-2 or even a 0 day, cumulative 30 day 12 or whatever trader wants
Trading levels depends on what sort of trader you are, I am just trying to figure out how to calculate number line ( think I have number line figured where by I basically determine OR based on pit session then time say 5 minutes into the session or 15 even set the A' values and C values based on % of ATR for me and then compute after day is over, roll etc then when you get to +9/-9 two days in a row you have a potential trend set up in the respective direction.......