The ACD Method
- Thread starter sbrowne126
- Start date
Trilogic, since you pulled up one of my old posts, I thought Iâd chime in. Youâll read throughout this tread that there isnât one magic way to calculate ACD levels, Thatâs right. The magic is when you develop a methodology that makes sense to you and that you apply every day exactly the same way. My method of using ACD is taken from Fisher, but I donât do it the same way. If anyone else on the plant does the calcs like I do then itâs pure coincidence. Iâll tell you what I do. For the daily I use a 15 minute OR. I donât use 20% of the daily ATR for the A levels. I use intraday data because it better reflects the volatility. There are 26 15 minute periods in a trading day for stocks. I use a 26 period 15 min ATR to determine my daily A levels. Through trial and error I use a multiplier on the ATR value and stick to it for every daily A level. I donât use a multiplier on the weekly, monthly, etc but otherwise I use the same method. I track a small universe of mostly triple ETFs like TQQQ, UPRO, and TNA. Using today as an example, my TQQQ A up was 62.52. The 11.55 bar failed at 62.52. My A down was 61.04 which was confirmed. Price rallied until the 2.25 bar failed at the A down. Price subsequently rallied again, this time failing at the bottom of the OR. Price closed below the OR so my number-line for it today is -3.
ACD is only part of what I do. I also monitor market internals very closely and have it all in a spreadsheet so I can more readily see extremes and potential reversal areas. Iâve done it this way for more than two years now and love it. I donât always trade it right, I screw up some trades and not all of them follow the script. But enough do to be very useful.
ACD is only part of what I do. I also monitor market internals very closely and have it all in a spreadsheet so I can more readily see extremes and potential reversal areas. Iâve done it this way for more than two years now and love it. I donât always trade it right, I screw up some trades and not all of them follow the script. But enough do to be very useful.
Sell in May and Go Away?
Well thatâs sure not what my number lines are showing.
You can see the strength in XLB and XLE. XLK confirmed on Thursday with a 6, 10, 17 and pulled back a bit on Friday (the 5 day) to 4,12,21.
First time the DOW has confirmed in some time and SPY is right there.
Dollar neutral SPY and GLD or SPY and UNG? (Like I know
)
In my retirement MFâs Iâve overweighed large cap value; then large cap growth; then mid cap value and finally mid cap growth. On a Relative Strength basis, after many months, the SPX is now outperforming both the MID and SML (MID is also outperforming SML.) Large cap value is out performing LCG and mid cap value is outperforming MCG.
Well thatâs sure not what my number lines are showing.
You can see the strength in XLB and XLE. XLK confirmed on Thursday with a 6, 10, 17 and pulled back a bit on Friday (the 5 day) to 4,12,21.
First time the DOW has confirmed in some time and SPY is right there.
Dollar neutral SPY and GLD or SPY and UNG? (Like I know
)In my retirement MFâs Iâve overweighed large cap value; then large cap growth; then mid cap value and finally mid cap growth. On a Relative Strength basis, after many months, the SPX is now outperforming both the MID and SML (MID is also outperforming SML.) Large cap value is out performing LCG and mid cap value is outperforming MCG.
Sell in May and Go Away?
Well thatâs sure not what my number lines are showing.
You can see the strength in XLB and XLE. XLK confirmed on Thursday with a 6, 10, 17 and pulled back a bit on Friday (the 5 day) to 4,12,21.
First time the DOW has confirmed in some time and SPY is right there.
Dollar neutral SPY and GLD or SPY and UNG? (Like I know
In my retirement MFâs Iâve overweighed large cap value; then large cap growth; then mid cap value and finally mid cap growth. On a Relative Strength basis, after many months, the SPX is now outperforming both the MID and SML (MID is also outperforming SML.) Large cap value is out performing LCG and mid cap value is outperforming MCG.
I got a confirm last week on ES. I think she is going to at least test the 1920 area. A lot of charts out there look really nice. Lot of strong stuff. The market does NOT look toppy. Vix looks like it wants to flirt with single digits again.
http://vimeo.com/15967837
right around hour mark discussing +/- days, anyone still using these in their everyday evaluation/calculation for making trades ?
Is that the "what happened 30 days ago is likely to happen again today" indicator?
I believe so, still relevant wondering, find it hard to believe, but...
Also I think you wrote that Mark said if you trade from ideas in the book you will get "killed"
What exactly does this mean, .... whats the point of the description on the OR and pivots then, an number line... hope you dont say just a guide or something
I never used that nor understood it.