The ACD Method

Robert Yanks · Mar 11, 2014

Maverick74 said:
I actually use different time confirmations on different products and I use different time confirmations regarding number line purposes and trading purposes. So there is no cut and dry answer. I guess I can ask, are you referring to time frame for purposes of scoring number lines or for actual intra-day trading.

Thanks for that Mav.

Yes sir, time confirmations for number lines. That is, for the stocks and the sectors you've previously posted you follow, your time confirmations for the number lines. (Are they equal to the OR or some percent of the OR?)

Thanks

Maverick74 · Mar 11, 2014

Robert Yanks said:
Thanks for that Mav.

Yes sir, time confirmations for number lines. That is, for the stocks and the sectors you've previously posted you follow, your time confirmations for the number lines. (Are they equal to the OR or some percent of the OR?)

Thanks

Well, I use different numbers for different products. For stocks and for the purpose of number lines, I use one hour confirmations. But it's lucid. It's more a certain pattern I want to see vs getting down to counting minutes and using an exact o-knife.

jsmooth · Mar 13, 2014

for CL and NG I've been using the 20 Min pit opening range the past year to give me good setups and mkt bias to work with for the day...I chat with a few guys on the NYMEX floor and they all watch the 20 min OR....I love setups when the market tries to break above (or below) this 20 min range, but can only give you 10-15 ticks (stops getting hit) and it forms a doji type candle on the chart (big wicks above the 20MinOR levels)...real nice setup to fade the move and look for targets on the opposite side of the 20min range for break the other way. I also think you see a lot of gamma scalpers using this setup to fade and hedge to delta neutral at break even opening price once it gets back there. I've seen this a lot more with CL, as for NG, that market is usually a "normal dist day (mkt profile)" type market, 90% of the time i think. I also believe pivots play a huge role in these markets. Everyday, the market will gravitate towards the nearest pivot (PP, S1, R1, ect...) then trade from there....even just looking at todays NG april....we had a huge gap on open, but S1 pivot played a big support around the EIA#, then after it faded up and dropped again...As someone who has been using a modified version of ACD over the past 5 years, I dont really look for and wait for A up/down values, I just use opening range levels (and significant price points) in combination with a few of them (opening ranges, number releases, week/month opening levels), to trade against and find targets....Look at the ES today...you had a nice level/risk reward to short against this morning - todays opening range + the weeks opening, if i remember that was 7450, todays high was 7500 i think

Interesting this thread has lasted so long with so many ppl, wow! just some of my 2cents

justrading · Mar 13, 2014

jsmooth said:
for CL and NG I've been using the 20 Min pit opening range the past year to give me good setups and mkt bias to work with for the day...I chat with a few guys on the NYMEX floor and they all watch the 20 min OR....I love setups when the market tries to break above (or below) this 20 min range, but can only give you 10-15 ticks (stops getting hit) and it forms a doji type candle on the chart (big wicks above the 20MinOR levels)...real nice setup to fade the move and look for targets on the opposite side of the 20min range for break the other way. I also think you see a lot of gamma scalpers using this setup to fade and hedge to delta neutral at break even opening price once it gets back there. I've seen this a lot more with CL, as for NG, that market is usually a "normal dist day (mkt profile)" type market, 90% of the time i think. I also believe pivots play a huge role in these markets. Everyday, the market will gravitate towards the nearest pivot (PP, S1, R1, ect...) then trade from there....even just looking at todays NG april....we had a huge gap on open, but S1 pivot played a big support around the EIA#, then after it faded up and dropped again...As someone who has been using a modified version of ACD over the past 5 years, I dont really look for and wait for A up/down values, I just use opening range levels (and significant price points) in combination with a few of them (opening ranges, number releases, week/month opening levels), to trade against and find targets....Look at the ES today...you had a nice level/risk reward to short against this morning - todays opening range + the weeks opening, if i remember that was 7450, todays high was 7500 i think

Interesting this thread has lasted so long with so many ppl, wow! just some of my 2cents

Thanks for sharing. In the interests of a less cluttered chart, I only have the PP on it, and not R and S. Since I have been looking at FX, I have been wondering about the various R and S levels also, as the full range of pivots appears to be popular in currencies.

Similarly, whilst I don't believe there is anything special about Fibonacci levels, they do appear to be popular with currency traders.

So I am inclined to believe they work, not because there really is anything intrinsically special about them, but simply because enough people use them so as to create self-fulfilling prophecies.

jsmooth · Mar 13, 2014

justrading said:
Thanks for sharing. In the interests of a less cluttered chart, I only have the PP on it, and not R and S. Since I have been looking at FX, I have been wondering about the various R and S levels also, as the full range of pivots appears to be popular in currencies.

Similarly, whilst I don't believe there is anything special about Fibonacci levels, they do appear to be popular with currency traders.

So I am inclined to believe they work, not because there really is anything intrinsically special about them, but simply because enough people use them so as to create self-fulfilling prophecies.

Everyday I'll trade (or use) the 50% fib of prior day close to current day open - 50% retrace....if i buy/sell against the open, that 50% fib will be my first level.

kinggyppo · Mar 13, 2014

jsmooth said:
for CL and NG I've been using the 20 Min pit opening range the past year to give me good setups and mkt bias to work with for the day...I chat with a few guys on the NYMEX floor and they all watch the 20 min OR....I love setups when the market tries to break above (or below) this 20 min range, but can only give you 10-15 ticks (stops getting hit) and it forms a doji type candle on the chart (big wicks above the 20MinOR levels)...real nice setup to fade the move and look for targets on the opposite side of the 20min range for break the other way. I also think you see a lot of gamma scalpers using this setup to fade and hedge to delta neutral at break even opening price once it gets back there. I've seen this a lot more with CL, as for NG, that market is usually a "normal dist day (mkt profile)" type market, 90% of the time i think. I also believe pivots play a huge role in these markets. Everyday, the market will gravitate towards the nearest pivot (PP, S1, R1, ect...) then trade from there....even just looking at todays NG april....we had a huge gap on open, but S1 pivot played a big support around the EIA#, then after it faded up and dropped again...As someone who has been using a modified version of ACD over the past 5 years, I dont really look for and wait for A up/down values, I just use opening range levels (and significant price points) in combination with a few of them (opening ranges, number releases, week/month opening levels), to trade against and find targets....Look at the ES today...you had a nice level/risk reward to short against this morning - todays opening range + the weeks opening, if i remember that was 7450, todays high was 7500 i think

Interesting this thread has lasted so long with so many ppl, wow! just some of my 2cents

good post, big trend day down today, if you were short into today then high class problems, if not the sooner you recognized a trend day down the better, agree on your time frame .

Maverick74 · Mar 13, 2014

kinggyppo said:
good post, big trend day down today, if you were short into today then high class problems, if not the sooner you recognized a trend day down the better, agree on your time frame .

That's a lot of downtrends King. I could have closed my eyes and picked any one of them eh?

kinggyppo · Mar 13, 2014

Maverick74 said:
That's a lot of downtrends King. I could have closed my eyes and picked any one of them eh?

it was interesting to me that crude was actually up/flat today, but yes very correlated price action today.

Robert Yanks · Mar 17, 2014

Maverick74 said:
I actually use different time confirmations on different products and I use different time confirmations regarding number line purposes and trading purposes. So there is no cut and dry answer. I guess I can ask, are you referring to time frame for purposes of scoring number lines or for actual intra-day trading.

Hello Mav,

Perhaps you can post your 5 day for IYT, XLF and XLB.

Thanks

Maverick74 · Mar 17, 2014

Robert Yanks said:
Hello Mav,

Perhaps you can post your 5 day for IYT, XLF and XLB.

Thanks

Sir Robert, I don't have them. I am sorry. I haven't been updating my sector ETF's the last few months as I have been working on a large project and simply have not had the time. I don't see myself doing updates on them for a while. I'm certain whatever values you have they are absolutely correct down to the Yen.