The ACD Method

redbaron1981 said:
http://www.bloomberg.com/news/artic...reach-highest-quarterly-level-since-recession

http://www.bloomberg.com/news/video...l-every-investor-should-see-heading-into-2016

Just putting these out there as I find them quite interesting. A little too early to tell but are we seeing sentiment/price action divergence?
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Did you see what was in the US spending / budget released a week or so ago?
The end to the 40 year ban on exporting unrefined products. No kidding.

Remember June, 2014 when Putin was stressing out the world with Ukraine and oil was advancing practically each day. Well to the very day, the top in crude , it was anounced that US
Lawmakers were going to repeal the 40 year crude export ban. Refiners were down across the board that day and well the rest is history.
 
Maverick74 said:
Yes, Merry Christmas and Happy Holidays to everyone here. Thanks for making the ACD thread the highest posted thread under technical analysis (knocking out that crazy Elliot wave crap). Just kidding....:)
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Merry Christmas to you and your family Mav.

You have given many of us here so very much, and still are, and we appreciate it.
 
Maverick74 said:
Yes, Merry Christmas and Happy Holidays to everyone here. Thanks for making the ACD thread the highest posted thread under technical analysis (knocking out that crazy Elliot wave crap). Just kidding....:)
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Hello Mav,

I’d like your thoughts on a potential number line type indicator before I do the work.

Question: Do you think a bullish percent type NL indicator would have some value? I was thinking of this last night (yes I was full of good cheer :))

Here’s a summary of the bullish percent charts from stockcharts:

“The Bullish Percent Index (BPI) is a breadth indicator based on the number of stocks on Point & Figure buy signals within an index. Developed by Abe Cohen in the mid 1950s, the Bullish Percent Index was originally applied to NYSE stocks. Cohen was the first editor of ChartCraft, which later became Investors Intelligence. BPI signals were further refined by Earl Blumenthal in the mid 70's and Mike Burke in the early 80's. Because a stock is either on a P&F buy or sell signal, there is no ambiguity when it comes to P&F charts. This makes BPI a straightforward indicator with clearly defined signals.”

I would not use the standard P&F 3 box format but rather a running daily summary. Also there would be three lines on the chart: Those stocks confirmed positive, reset and confirmed negative. At the bottom of the chart would be an index.

Here’s a daily Bullish Percent chart of the $SPX:

http://stockcharts.com/h-sc/ui?s=$BPSPX&p=D&yr=1&mn=0&dy=0&id=p41989843848

So, I would take something like 30 sectors and sum them on a daily bullish percent chart. On a particular day, if there were … say 15 sectors in positive confirmed, then that line would be at the 50% mark. If 6 sectors where negative confirmed then that line would be at the 20% mark and resets would be setting at the 30% mark. This would be easy to set up in Excel.

At a glance you could see a chart (with history) of all the summed sectors …. Well you know what I’m describing. What do you think?

Thanks
 
Robert Yanks said:
Hello Mav,

I’d like your thoughts on a potential number line type indicator before I do the work.

Question: Do you think a bullish percent type NL indicator would have some value? I was thinking of this last night (yes I was full of good cheer :))

Here’s a summary of the bullish percent charts from stockcharts:

“The Bullish Percent Index (BPI) is a breadth indicator based on the number of stocks on Point & Figure buy signals within an index. Developed by Abe Cohen in the mid 1950s, the Bullish Percent Index was originally applied to NYSE stocks. Cohen was the first editor of ChartCraft, which later became Investors Intelligence. BPI signals were further refined by Earl Blumenthal in the mid 70's and Mike Burke in the early 80's. Because a stock is either on a P&F buy or sell signal, there is no ambiguity when it comes to P&F charts. This makes BPI a straightforward indicator with clearly defined signals.”

I would not use the standard P&F 3 box format but rather a running daily summary. Also there would be three lines on the chart: Those stocks confirmed positive, reset and confirmed negative. At the bottom of the chart would be an index.

Here’s a daily Bullish Percent chart of the $SPX:

http://stockcharts.com/h-sc/ui?s=$BPSPX&p=D&yr=1&mn=0&dy=0&id=p41989843848

So, I would take something like 30 sectors and sum them on a daily bullish percent chart. On a particular day, if there were … say 15 sectors in positive confirmed, then that line would be at the 50% mark. If 6 sectors where negative confirmed then that line would be at the 20% mark and resets would be setting at the 30% mark. This would be easy to set up in Excel.

At a glance you could see a chart (with history) of all the summed sectors …. Well you know what I’m describing. What do you think?

Thanks
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Yes, I already have this. Yes, this is meaningful. Years ago a buddy of mine did the work on TS that did all sorts of combinations of this output. More recently, a few fellas on this very thread did a version of this for me. There are endless ways you can use this information. But ultimately they give the same output which is internal breadth. Since you are already tracking the data, the formulation is pretty straightforward. Yes, I would recommend you doing this. :)
 
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