The ACD Method

Quon · Oct 17, 2011

Mark Fisher and Dennis Gartman are scheduled to be on the Fast Money Half Time Report today. 12 e.s.t.

Just an FYI

Maverick74 · Oct 17, 2011

Quote from Quon:

Mark Fisher and Dennis Gartman are scheduled to be on the Fast Money Half Time Report today. 12 e.s.t.

Just an FYI
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Thanks Quon! Nice catch.

Maverick74 · Oct 17, 2011

Quote from Quon:

Mark Fisher and Dennis Gartman are scheduled to be on the Fast Money Half Time Report today. 12 e.s.t.

Just an FYI
More...

You know, I know why Fisher is going to be on Fast Money today. He is going to take credit for his EP call awhile back. He recommended that stock as a potential buyout candidate and sure enough, they got bought out this weekend. That is my call, you heard it here first.

Quon · Oct 17, 2011

Good call.

I'm hoping they ask him about the run in crude too. With luck they'll have the Fisher and Gartman segments overlap. I know Fisher has a great deal of respect for Gartman.

The format of the Half Time Report was just switched to a full hour, so there should be plenty of time.

baggerlord · Oct 17, 2011

Quote from Maverick74:

Not at all. Look, I think it would help here to differentiate between stocks and futures. Futures have lots of intra-day movements and follow through. Stocks are tougher since they don't trade 24 hours like most futures do, stocks gap and move hard on the open then in many cases spend all day in a trading range.

The entire Logical Trader book was dedicated to day trading, not longer term trading. I think MFbreakout has done a great job on this thread showing how he uses it to trade CL which has lots of follow through. And I've said this time and time again, you need to know the product you are trading. GE stock does not trade the same way as CL. And CL does not trade the same as ZB. You have to treat these products differently.

With stocks, you need to be very careful with stock selection. You can't just trade AAPL every day. You have to watch the news flow, earnings, volume, other things. Stocks are not easy to trade. I've said this for years on this forum. Part of that is because there are so many of them and it takes one a lot of experience to select the right stocks to daytrade.

There is plenty of follow through in stocks, but you have to be in the right ones. I know I'm stating the obvious when I say that, but it really is as simple as that.

As far as trading failed A ups and A downs, again, I've said this before it comes down to your style. Is that the kind of trader you are? Because if it's not, I assure you ACD will not make you profitable trading that way. You have to trade your personalty. If you like to follow trends, you will find fading moves very hard. If you like to fade, you will find staying in a trend very hard.

Once again, ACD is a methodology, not a system. So whatever you are doing now without ACD, just lay ACD on top of that. If you trade CL before, then trade it now. If you trade breakouts now, then lay ACD on top of that to trade breakouts better. Don't fight what comes natural to you because you "think" ACD will work better.
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Been thinking about this and brainstorming some ideas for selection.

From the ACD book:

Numberline ideas
Stocks that have hit + or -7 for the first time in a while.
Stocks that have hit 0.

Other ideas some from stuff you have posted:

Stocks near a monthly or quarterly A up that make a daily A down. (or a failed A up)

The good new bad action play

Non ACD:

52 week high/low
breakout below/above monthly pivot + an A signal
I've noticed when prior day high or low is roughly the same as the A level it is more likely to have follow through.

Maverick74 · Oct 17, 2011

No Fisher?

Quon · Oct 17, 2011

I know, weird. They ran the promo during Squakbox, so not sure what happened there... bummer

Maverick74 · Oct 17, 2011

Quote from baggerlord:

Been thinking about this and brainstorming some ideas for selection.

From the ACD book:

Numberline ideas
Stocks that have hit + or -7 for the first time in a while.
Stocks that have hit 0.

Other ideas some from stuff you have posted:

Stocks near a monthly or quarterly A up that make a daily A down. (or a failed A up)

The good new bad action play

Non ACD:

52 week high/low
breakout below/above monthly pivot + an A signal
I've noticed when prior day high or low is roughly the same as the A level it is more likely to have follow through.
More...

How about this under the keep it simple category. Look for stocks making A ups when the indices are making A downs. Today examples:

SHLD, EDU and WYNN.

mfbreakout · Oct 17, 2011

ACD method , different pivot, numbers line , pivot ranges for es, tf and cl and thus different results.

http://www.screencast.com/t/spPtfdNL

<a href="http://www.screencast.com/t/BwS8jEn3WJb">2011-10-17_1533</a>

<a href="http://www.screencast.com/t/1QwGNfxUt8">2011-10-17_1518</a>

flip · Oct 18, 2011

For all of you that look at the number line values: Do you have some kind of spreadsheet were you manually put in all values for each day and market that you follow? Or do you have that automated, i.e. you automatically get the number for each market? In some cases the values might be quite clear (e.g. market makes an A up and closes above A up, so it gets a value of +2 for this day), but there might be some cases where it's not so clear and hence probably difficult to automate.