The ACD Method

[Maverick74]

Number Lines

Okay - last one for the week. Promise

Per today's data, I added the weeklies to the 11 sector and various symbols.

Look at the VIX Mav Volatility Index at only 2.

Question about confirmations Mav: You can see that XLY is -4, -7 and -11. In most all cases do you like to have the 5 day at a -5 before they all confirm? Or ....

Thanks

So a brief overview of the 5 day. All the various number lines we use communicate information to us about the market. They open our eyes to value. Some provide information on price, some on volatility, some on time and some on market environment. All things we need to optimize our decision making process.

I use the 5 day for several things. A few I won't go into. A few I will. Since the 5 day is short term in nature and very responsive to change, it can be used to confirm short term momentum and it can be used to reject it.

The mistake a lot of people make with data is that they assume data is constantly giving useful information. Data by it's definition is noise. It's value only becomes realized when it's meaningful. Therefore, the ACD operator has to become adept at knowing the difference. A large majority of the time the 5 day offers little to no value. So no, you don't "need" it to do anything. But when it does, pay attention to it.

 

[Maverick74]

Hello trilogic,

I'm not aware of anyone ever posting on the thread that they had automated the number line.

One of my chapters in the underground Mav E-book talks about how automating the number lines would defeat the whole purpose of them. It's analogous to automating art. Although I hear people are working on that. The number lines get their "value" from the fact that they are should not be obvious, straightforward, plain, structured and in plain sight. For if that were the case, there would be nothing unique about them. It's the fact that you have something right in front of your eyes that NOBODY else has. THAT is the value.

 

[Maverick74]

I felt compelled to put this chart of NFLX up. This is why you need to position size, no matter how good you are sometimes you are going to get caught. If you are long here and waited for a reversal, you are getting killed. People need to consider position size relative to their account very seriously. And now back to our regularly scheduled programming.....

You are never going to become an ET billionaire without massive size King. just sayin...

 

[trilogic]

One of my chapters in the underground Mav E-book talks about how automating the number lines would defeat the whole purpose of them. It's analogous to automating art. Although I hear people are working on that. The number lines get their "value" from the fact that they are should not be obvious, straightforward, plain, structured and in plain sight. For if that were the case, there would be nothing unique about them. It's the fact that you have something right in front of your eyes that NOBODY else has. THAT is the value.

I understand, just want to learn how many people actually track more than say 12 stocks currency etc; take a little effort is all to over each day and make sure you assign correctly

 

[justrading]

I understand, just want to learn how many people actually track more than say 12 stocks currency etc; take a little effort is all to over each day and make sure you assign correctly

I track close to 90 symbols, mix of futures, stocks and FX.

I use Sierra Charts so OR and A levels auto plotted and closing bar is flagged. Basically I minimise the time needed to identify levels and bars, and just need to focus on what score I will award.

When you've done it thousands of times, it actually gets pretty fast. It's only when the price action is not obvious/showing a clear bias that it needs a bit of time deciding on the score.

 

[Maverick74]

I track close to 90 symbols, mix of futures, stocks and FX.

I use Sierra Charts so OR and A levels auto plotted and closing bar is flagged. Basically I minimise the time needed to identify levels and bars, and just need to focus on what score I will award.

When you've done it thousands of times, it actually gets pretty fast. It's only when the price action is not obvious/showing a clear bias that it needs a bit of time deciding on the score.

I have found that absolutely nothing else has given me better feel for the markets then when I score my number lines. Another reason why they should not be automated. When you score a number line, it requires you to get inside that market and look at it's mechanics. Just giving someone a number and saying 7, I don't know what 7 means. But If I'm involved in that market every single day and scoring it, then that 7 carries a lot of value for me. This is another reason why I've stated countless times on here that my number lines have no value to you. Because that number has meaning to me. If I just spit out a number and say 12, how is that number suppose to have any meaning if you don't know where it came from and you don't know the story behind it.

So yes, there is work involved but that work is what allows you to develop the feel and intuition behind what's going on. Something I never ever got from simply staring at a chart.

 

[justrading]

I have found that absolutely nothing else has given me better feel for the markets then when I score my number lines. Another reason why they should not be automated. When you score a number line, it requires you to get inside that market and look at it's mechanics. Just giving someone a number and saying 7, I don't know what 7 means. But If I'm involved in that market every single day and scoring it, then that 7 carries a lot of value for me. This is another reason why I've stated countless times on here that my number lines have no value to you. Because that number has meaning to me. If I just spit out a number and say 12, how is that number suppose to have any meaning if you don't know where it came from and you don't know the story behind it.

So yes, there is work involved but that work is what allows you to develop the feel and intuition behind what's going on. Something I never ever got from simply staring at a chart.

Yup. You have the levels auto plotted and then you're examining price action. Sometimes it heads off in one direction and never looks back. You see it's been doing that a few days already. Other cases it swings up and down but can't really break in any direction, or finally manages to after several attempts. All info you will never get if you run a program and it spits out '2'.

For me at least the work points me to 'nothing's happening' or 'something's brewing'.

I think also trading style might have some influence on how we see this. Some folks trade just a handful of symbols on short time frames, so if it's moving today they want to jump on board. I want a larger basket because I want to trade longer term, so the work lies in catching the bigger moves and not in staring at the screen all day.

 

[trilogic]

I track close to 90 symbols, mix of futures, stocks and FX.

I use Sierra Charts so OR and A levels auto plotted and closing bar is flagged. Basically I minimise the time needed to identify levels and bars, and just need to focus on what score I will award.

When you've done it thousands of times, it actually gets pretty fast. It's only when the price action is not obvious/showing a clear bias that it needs a bit of time deciding on the score.

Oh wow, nice. I have a script for opening range however I need practice determining or assigning values...

need to find out more about Mav vol. number see what that s all about too

 

[justrading]

Oh wow, nice. I have a script for opening range however I need practice determining or assigning values...

need to find out more about Mav vol. number see what that s all about too

With Sierra Charts, High/Low of a specified time range is one of the standard studies. So if selected, OR will plot automatically.

Different people have different approaches for A levels. Some use a fixed value, updated perhaps weekly, others like me use a daily value to reflect current volatility. Again, with SC the spreadsheet studies allow me to extract that value, +/- with OR and auto plot. (The different approaches are discussed in detail in the first 450 pages of this thread, study and decide which route you wish to take).

The closing bar highlight is another standard study on SC, useful with futures and FX so you don't need to look for the bar.

All this for one purpose, to remove the time wasting grunt work from the exercise.

One can then focus on what really matters, price action.

Re the Mav vol number, it was explained again a few pages back.

 

[trilogic]

With Sierra Charts, High/Low of a specified time range is one of the standard studies. So if selected, OR will plot automatically.

Different people have different approaches for A levels. Some use a fixed value, updated perhaps weekly, others like me use a daily value to reflect current volatility. Again, with SC the spreadsheet studies allow me to extract that value, +/- with OR and auto plot. (The different approaches are discussed in detail in the first 450 pages of this thread, study and decide which route you wish to take).

The closing bar highlight is another standard study on SC, useful with futures and FX so you don't need to look for the bar.

All this for one purpose, to remove the time wasting grunt work from the exercise.

One can then focus on what really matters, price action.

Re the Mav vol number, it was explained again a few pages back.

Looked at fisher 30 day cum. number line, not one is nearing+/-9 I assume you have not taken any trades recently ?

I will look into the Vol. line once better handle on calculating he number line, thanks