The ACD Method

Maverick74 said:
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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Thank you sir!

You know I can visualize charts with the 5 day and monthly NL's under these too. What they did ... how they reacted, etc.

Mav I sent you an email and perhaps you can take a peek when you have time.

Thanks again
 
A question for all you ACDers out there. What setup do you find best to view your ACD information.

Currently I do all my number line scoring manually on an excel spreadsheet which I update every evening. I have one sheet for scoring and then other sheets for 30,5,monthly resets and volatility measurements. The individual sheets have conditional formatting so that the strength of instruments stands out visually between greens and reds. I have been contemplating to have number line scoring automated but I am starting to believe that this might be a waste of time. When scoring I am highly discretionary and this would be difficult to code.

My charting platform is Esignal and I just use the basic package with 15 minute delayed data. I have a watch list with all the instruments I watch and then symbol linked to this are charts displaying intraday, weekly, monthly and quarterly ACD levels. So as I flick through in the evening scoring products, I can also see where we are trading in relation to my A levels.

An additional improvement to this is to have columns on my A list which will display numerically, where we are in relation to higher timeframe A levels. For example if we are trading above an opening range the column would display 1, if above the A level it would display 2 etc. I believe this would help to identify strong moves across related asset classes. For example I would definitely want to know if all the Yen pairs were confirming monthly A ups as could be an early warning for risk assets etc.

Earlier on in this thread Mav has talked about his FX montage where he displays all the dollar, euro, yen and swissy crosses. Also inverting some of the pairs for easier visual recognition etc which I have also done which aids identifying pairs of interest.

Another important aspect is how you monitor the news and sentiment. At the moment I have a word file where I copy down important notes for the day with links to articles and notes etc. Within this I also write my views on what sentiment has been across the various asset classes, with an attempt to identify divergence between sentiment and price action.

So how does my ACD setup compare against others on this thread? I would really be interested in hearing how others present ACD data as it can be overwhelming if not done properly. I believe that since ACD is a framework for monitoring price action it is very important to have data laid out in a way that makes it as easy to discern the action as possible. Although as Mav states we should aim to personalise our approach, it would be good to discuss the way in which others have found aided there approach which may spur newer and better ideas of how to go about this.

Thanks.
 
redbaron,

I created an excel spreadsheet that runs a webquery and pulls intraday price data for about 3,000 stocks, with a 15 trading day lookback.

It then does automatic numberline scoring for each of the stocks. My spreadsheet also has has a summary tab that shows 1D pivot high-lows, profit per stock from trading ACD over prior 15 days, # of winning trades, # of losing trades, % of trades profitable, average volatility, avg daily range/avg daily opening range, whether today was an inside day, NR7 day, etc. It calculates these results both with straight opening range breakouts, and taking opening range breakouts with the % of ATR buffer (ACD method).

I then have a separate spreadsheet that I load this data into for tracking purposes.

At the current moment I am finding this to be a bit of information overload, and think it will take some time to draw meaningful insights from the data (once my tracking spreadsheet gets has a longer history of data).

For example, up until last week 75% of the stocks with weakest number lines are in oil services - no surprise there. There probably is value in going through 20 oil services stocks to determine which is the best to trade using intraday ACD but that means your time is taken away from other things that you could be researching. I think narrowing the list of 3,000 stocks down will be helpful in the future.

If anyone would like to collaborate, feel free to PM me. I'd be happy to share automated ACD tools in exchange for some collaboration/mentoring in terms of actually trading intraday, as this is where I am still struggling.
 
redbaron1981 said:
Another important aspect is how you monitor the news and sentiment. At the moment I have a word file where I copy down important notes for the day with links to articles and notes etc. Within this I also write my views on what sentiment has been across the various asset classes, with an attempt to identify divergence between sentiment and price action.
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For this something like evernote might be very valuable tool (especially with its webclipper plugin). Or alternatively ms office one note.
 
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