The ACD Method

wow12 · Mar 17, 2014

Hi, maverick I wanna say big thank you for providing vital information in my opinion with regards to trading / acd concept (lol half things still go over my head) and I have opened forex account been trading for month and half only managed to only lose 2.3% of my account so far, so not to bad considering this my first account I guess, I would participate in the ACD thread itâs just my knowledge is very little and half the terminology that is passed around I donât get so I will probably remain a lurker ï . I was going ask you about spread trading or market neutral trading I see some patterns /correlationâs breakdowns within the number line Iâve been trying to put place some type of spread trades on but Iâve just been getting killed if you could shine some light on that aspect (I watched video of famous floor trader teaching other traders coming to floor and remember he said the traders that survived in the long run where spreaders so any info or guidance would be greatly appreciated with regards to forex)

Maverick74 · Mar 17, 2014

wow12 said:
Hi, maverick I wanna say big thank you for providing vital information in my opinion with regards to trading / acd concept (lol half things still go over my head) and I have opened forex account been trading for month and half only managed to only lose 2.3% of my account so far, so not to bad considering this my first account I guess, I would participate in the ACD thread itâs just my knowledge is very little and half the terminology that is passed around I donât get so I will probably remain a lurker ï . I was going ask you about spread trading or market neutral trading I see some patterns /correlationâs breakdowns within the number line Iâve been trying to put place some type of spread trades on but Iâve just been getting killed if you could shine some light on that aspect (I watched video of famous floor trader teaching other traders coming to floor and remember he said the traders that survived in the long run where spreaders so any info or guidance would be greatly appreciated with regards to forex)

Thanks Wow. Two things. One, if there is any terminology you don't understand, just ask, I'll be happy to define stuff and if I'm busy I'm sure someone else will jump in. And two, it will help if I understand exactly what it is you are trying to do regarding spreads that way I'll be able to point you in the right direction. Otherwise spreads is such a wide umbrella I won't know where to start. Welcome to the board.

kinggyppo · Mar 17, 2014

wow12 said:
Hi, maverick I wanna say big thank you for providing vital information in my opinion with regards to trading / acd concept (lol half things still go over my head) and I have opened forex account been trading for month and half only managed to only lose 2.3% of my account so far, so not to bad considering this my first account I guess, I would participate in the ACD thread itâs just my knowledge is very little and half the terminology that is passed around I donât get so I will probably remain a lurker ï . I was going ask you about spread trading or market neutral trading I see some patterns /correlationâs breakdowns within the number line Iâve been trying to put place some type of spread trades on but Iâve just been getting killed if you could shine some light on that aspect (I watched video of famous floor trader teaching other traders coming to floor and remember he said the traders that survived in the long run where spreaders so any info or guidance would be greatly appreciated with regards to forex)

Maverick posted a few months back that forex by definition is spread trading. He can explain it better than me. I would tell that you should understand how certain pairs are correlated to commodities. ie cad/jpy is correlated to oil, australian dollar is correlated to gold. You should also understand that some pairs are more volatile/ larger ranges per day and other pairs are sleepy for lack of a better word. Start with the world clock regarding stock exchange openings we start with Australia, Japan, then Germany, London, then the US in a big 24 hour wheel. So I watch the Nikkei like a hawk. If the Nikkei opens up down -3% you know there is a high likelihood that the German DAX and London is gonna open down with the US to follow. The USDYEN is sort of a risk on/ risk off pair, you could watch this pair alone as it correlates to the US stock market and do well.

http://www.investopedia.com/articles/forex/10/trading-currency-commodity-correlations.asp

wow12 · Mar 17, 2014

kinggyppo , thanks for the link and info all the help is appreciated , do you lean against your acd levels to determine if nikkei is down.

maverick in-terms of spreading i mean one currency pair vs another for example gbp/jpy vs gbp/usd ( this is a trade i took today didn't go to well

)

kinggyppo · Mar 17, 2014

wow12 said:
kinggyppo , thanks for the link and info all the help is appreciated , do you lean against your acd levels to determine if nikkei is down.

maverick in-terms of spreading i mean one currency pair vs another for example gbp/jpy vs gbp/usd ( this is a trade i took today didn't go to well )

I use ACD more to confirm trades, I am looking for a reversal at an A down/A up along with some system ideas I have put together. ACD is not the holy grail but I think the levels help. If I see the mkt stop at an A down I am looking for a reversal trade along with confirmations, that's just me though, there are a zillion ways to trade.

wow12 · Mar 17, 2014

king i agree theirs a lot of different ways to use acd. i have been using intra-day levels for confirmation alongside stop levels also

wow12 · Mar 17, 2014

King and Maverick do you have your number lines for the gbp/jpy is possible you can give me quick 5 day snap shot of the number-line and i just want to contrast it alongside my number line and see if they match to some degree.

Robert Yanks · Mar 18, 2014

Maverick74 said:
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.

Ha!

NL's have certainly helped on a few small trades I've taken but mine seem pretty fast and active and I do like to compare to you when I can.

Robert Yanks · Mar 18, 2014

From the Russell 3000, I had 28 Yearly A Ups today and that is highest for the year (my yearly total is only 68). Of the 28, 8 made 52 week highs: ALK, DOE, LBY, PRXL, REX, UCTT, VSB, WLFC.

Mav has said more than once to study 52 week highs:

"There are a lot of stocks making new 52 week highs today. A word of advice for any newbies on this thread that is struggling making money trading: Take time every evening to go over all the stocks making new 52 week highs. Go through all the charts night after night after night. Just doing that one thing will make a tremendous difference in your trading. There were quite a few today."

A number of those 68 referenced above pulled back; had failed monthly A Downs and reversed up nicely.

kinggyppo · Mar 18, 2014

wow12 said:
King and Maverick do you have your number lines for the gbp/jpy is possible you can give me quick 5 day snap shot of the number-line and i just want to contrast it alongside my number line and see if they match to some degree.

I don't use number lines on forex, I know Mav is busy I would say use the book and start scoring your product for a month and see if the information is actionable.