One way to interpret this that is not "scary" is that it measures persistence, not value. In other words, what it's saying is that traders are not changing their bets. If something is working they are sticking with it.
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The ACD Method
- Thread starter sbrowne126
- Start date
One way to interpret this that is not "scary" is that it measures persistence, not value. In other words, what it's saying is that traders are not changing their bets. If something is working they are sticking with it.
In light of this new breadth indicator that you're using...what would be the line you draw between overvaluation and persistence...do you use something say like ISEE in combination?
Is that traditional market breadth or ACD market breadth?Our internal breadth is at the highest level we have ever seen since 2007.
Is that traditional market breadth or ACD market breadth?
ACD of course!
In light of this new breadth indicator that you're using...what would be the line you draw between overvaluation and persistence...do you use something say like ISEE in combination?
I don't think valuation is helpful in a trading context. The reason we look at data is more to try to understand what is happening vs trying to label it and in turn take some action. The breadth indicator is very useful for explaining how the market is trading and what type of market environment you are in.
This link has the values provided by Mark Fisher's website:
http://www.filehosting.org/file/details/557024/ACvalue.pdf
Not sure how much time you've spent with ACD, but most people recommend making the system your own by trying out various parameters.
I'd like to use his as a starting point. Can you just post the values? I'm getting odd messages when I click on the above link and want to avoid getting a virus.
Despite this recent decline I am still anticipating higher prices. The whole market still seems very strong and I am not seeing any serious breakdown of internal strength.This rally feels real
Today most of my stock indexes have thus far failed at the A down and quite a few of my sector ETF´s are actually managing to confirm A ups.
Confirmed weekly A downs across the board. Might just be a one week thing. The monthly A down at 1994 is probably a good spot to put some longs on.