I'll tell you what I think is the greatest thing about the ACD methodology. It keeps you from over trading. It really forces you to be patient. It's very easy to get caught up in all the volatility. Or impatient when the market is really slow.
The ACD Method
- Thread starter sbrowne126
- Start date
I'll tell you what I think is the greatest thing about the ACD methodology. It keeps you from over trading. It really forces you to be patient. It's very easy to get caught up in all the volatility. Or impatient when the market is really slow.
Ominous start to the new year judging by the 1st day performance of metals & certain currencies, completely opposite to last years performance..
Almost as if someone flipped the switch
There will be some interesting annual opening ranges for sure
Almost as if someone flipped the switch
There will be some interesting annual opening ranges for sure
I hate to "explain" why I think certain moves happen but given how much the market was up last year, most people were holding onto to huge capital gains and refused to lock in those gains in 2013. I mentioned this on another thread. I felt we could see some selling the first few days as investors and traders want to put those gains on their 2014 books. Vix barely budged today. Nothing too unusual in the sectors. I'm definitely a net buyer at the right levels on risk.
Ya, it's a stark reminder the markets like to dish out once in a while especially when runs are fully extended.
Fear & greed and all that, with people heading for the doors all at the same time.
Like today, it was massively profitable to simply press the SELL button on non-Yen currencies. Slicing thru all levels on the way down.
Just like on Taper day, pressing the BUY button did wonders. Kinda like 1999.
Fear & greed and all that, with people heading for the doors all at the same time.
Like today, it was massively profitable to simply press the SELL button on non-Yen currencies. Slicing thru all levels on the way down.
Just like on Taper day, pressing the BUY button did wonders. Kinda like 1999.
Crude will be testing the 93.75 level today or Monday.
Might see a bounce
I expect its brethren HO & RBOB to do likewise.
Done nothing but fall from A up to A down & beyond (see Mavs chart)
Might see a bounce
I expect its brethren HO & RBOB to do likewise.
Done nothing but fall from A up to A down & beyond (see Mavs chart)
EUR.AUD testing the Monthly A Down also, but number line does not support a short. CL is weaker, but not negative. Patience I suppose, unless we get a bounce.
Mav can share what he does.
I only track 30 day and 5 day, so no monthly reset for me. If there is an early A down, at the very least I would look for a good signal from the 5 day, signifying momentum in my favour. Without the 30 day, I wouldn't bet the farm initially.
I only track 30 day and 5 day, so no monthly reset for me. If there is an early A down, at the very least I would look for a good signal from the 5 day, signifying momentum in my favour. Without the 30 day, I wouldn't bet the farm initially.
OK, so let's clear up some confusion here. Now all these points have already been addressed in the thread, but I'll repeat them again. The purpose of the monthly number line is to CONFIRM or REJECT a monthly A level. It was created solely for that purpose. The 5 day momentum line also serves that purpose but since the 5 day is rolling, it can be used to confirm or reject ANY trade. It's simply spitting out the price action over the last week. I could pick any stock in the universe at random and armed with the 5 day alone, I could take a trade, say a moving avg crossover trade, and either reject or confirm it with the 5 day. To make this simple, if I'm fading something, I better NOT see a +/- 5 or greater on a fade. You are fading LEGIT momentum. If I'm buying momentum (long or short) I better not see a 0 number line.
The 30 day is a little different. The 30 day number line is NOT a trading signal. It's a price action indicator. It's telling you that the environment is such that a large move is possible and that if you board that train and it's working, STAY WITH IT. It's the only part of the ACD system that concerns itself with duration. I always hear guys on ET say, oh I sold this too early or I got out too fast or if only I would have held that.....blah, blah, blah. I have often likened the 30 day number line to that of a weather forecast. Just because the meteorologist says it's going to snow 12 inches next week, doesn't mean it will. It simply means based on his models, the atmosphere will be conducive to producing a large snow storm. Therefore, next week, if you start to see snowflakes (confirming the forecast) then it might be best to assume that the model is going to be right.
I hope all this made some sense.