The ACD Method

baggerlord said:
I've learned a lot from this thread but never really contributed anything. I've been learning python and my first project was to write code to analyze the distribution of monthly highs and lows. So here is a graph showing the percentage of the time that each trading day holds either a high or low for the month. Days are listed on the bottom as trading day of the month. This is going back 10-25 years depending on product.

1st is ES which is 16%.
More...

I'm confused...if I'm reading this graph correctly...it is saying that on the first day of trading for the month....ES has held its high or low 16% of the time?
 
koolaid said:
I'm confused...if I'm reading this graph correctly...it is saying that on the first day of trading for the month....ES has held its high or low 16% of the time?
More...

It's showing the significance compared to other days. The first day of the month clearly is not like any other day of the month and those graphs clearly show that.
 
Maverick74 said:
It's showing the significance compared to other days. The first day of the month clearly is not like any other day of the month and those graphs clearly show that.
More...
Theres also a correlation between when intraday highs and lows are formed - generally around the opens.

If anyones interested in seeing this in a particular instrument I can run it for you and produce some pretty charts - thats if Baggerlord doesn't beat me to it :)
 
Maverick74 said:
It's showing the significance compared to other days. The first day of the month clearly is not like any other day of the month and those graphs clearly show that.
More...

Ahh...I see it now. thank you. if one day this significance is no more...than ACD will be rendered worthless?
 
Here is something I have been thinking about. If understand that the daily opening range can give a small trader an advantage because large firms have to move money on a daily basis. This can't necessarily be taken advantage of by other firms because they also have to move large amounts of money to exploit this. However I am trying to understand why a monthly edge would continue to exist when this timeframe should allow nearly anyone to take advantage of it. Thoughts?
 
You must log in or register to reply here.
Back
Top