Quote from chicagodon:
Still playing around with ACD and stock trades.
I came across AMZN and found a few things interesting. Currently I'm rolling my numberlines, I do not restart them each month, I run a 30/20/10/5 number lines, I do it in excel so its not that bad to add and subtract. Also I am just starting these since Feb 1st, so my 30 day data isn't there, that's mainly why I started a 20, maybe when I feel like I have a sufficient number of 30 days I will drop the 20.
Around 03/05 - 03/ 11, AMZN had a small bullflag on the daily chart, and the 20 day numberline was showing strength (+9, +7, +9, +8, +7). However using the same dates on a 5 day number line you have (+8,+6,+6,+4,+1), possibly showing a lack of short term momentum, and it closed on the 'breakout' day at a +6 (20 day), but a -1 (5 day)
I have a confirmed monthly A Up right around those levels of 272.10, today we put in a monthly C Down.
I'm not sure if this is correct in saying the fact the number line was so weak around the monthly A Up level that a trade back through the opening range low of 261.05 for the month would have triggered a short trade with a target of the C down which was met with today. Or if you saw the confirmed monthly A up, but a weakening 5 day numberline you might have passed on the trade in general or waited for the numberline to regain some strength.
Again I'm really new to using ACD on a bigger picture, and really new to using a numberline so maybe I'm way off. That is just what I saw and wanted to see what others thought.