The ACD Method

Discussion in 'Technical Analysis' started by sbrowne126, Jul 16, 2009.

  1. Maverick74

    Maverick74

    ALL ACD lines are automated and derived "before" the fact. They are not drawn as support or resistance lines "after" the fact.
     
    #10691     Jan 1, 2016
    FCXoptions likes this.
  2. Oh ok cool, I wasn't implying you do them after or anything, I just didn't know if you had automated the process. If you don't mind me asking, was it pretty straightforward to automate that or did whatever your charting software setup is come with the ability to do that already?
     
    #10692     Jan 1, 2016
  3. SteveM

    SteveM

    Hey Mav,

    Earlier in this thread you discussed ACD intraday on equities. Did I read correctly that you said on days where the S&P opens with strength, you'd be looking to taking A down's on stocks showing weakness, and vice versa? Thanks.
     
    #10693     Jan 2, 2016
  4. Maverick74

    Maverick74

    Yes, sounds familiar. The idea there of course is you are trying to use ACD to partial out real strength and weakness from that of the overall market. When the market is strong, all strong stocks look the same. But stocks making and confirming A downs don't. If the market keeps going higher it's likely the stock will stay weak and if the market rolls over, the weak stock will get killed. Same on the upside, market is weak and stock is strong confirming an A up, the market then bounces in the afternoon and the strong stock goes parabolic.
     
    #10694     Jan 2, 2016
  5. Maverick74

    Maverick74

    I use TOS and thinkscript. The programmers there will even help you write the script. You can also take existing scripts and copy and paste what you need out of there to write your own. One thing that is very impressive that is my original script was written way back in 2008 or so and despite the 10,000 updates to TOS, it still works!!!! That's pretty amazing because some of the updates completely change the syntax. A few times there some bugs and the developers over there simply updated my code for me.
     
    #10695     Jan 2, 2016
    FCXoptions likes this.
  6. Mav,

    When you are computing your A levels for weekly, monthly and qtr timeframes are you using still using a % of the daily average range for these or are you for example using a weekly average range when computing the weekly A levels, monthly average range for monthly A levels etc.

    I realise that its really not that important for ACD so long as its relative however, in many of your posts you have mentioned about the important of using "recent" data when assessing price action. With that in mind I would say it would be best to use daily average range for all the A levels however I would appreciate your clarification.

    Thanks.
     
    #10696     Jan 2, 2016
  7. ignl

    ignl

  8. Maverick74

    Maverick74

    You need to use the range for the period in question : monthly range for monthly levels, etc.
     
    #10698     Jan 2, 2016
  9. Maverick74

    Maverick74

    Yeah this is where I really disagree with him. He is calling for a recession in China and all of asia yet this is not going to affect demand for oil? The US surely is not going to make up the slack and God knows Europe won't. Also when Iran goes online they will sell oil hand over fist before any new sanctions get levied on them. I think the energy recovery is still a post 2017 event. And energy equities are even worse. There is going to be an avalanche of bankruptcies this year in that space. Historically this usually marks the bottom (liquidation of bad debt). After this happens I think we will see a meaningful bottom but not before.

    IF.......................his thesis were to be true, in my humble opinion I would rush to the alternative space. What crushed the TAN etf and all the solar and wind players was low oil prices. Not even free wind and solar could compete with $35 oil and $2 nat gas. But if oil prices were to go meaningfully higher as he suggests, I would be long the wind and solar names.

    This is one of those rare times where I'm deeply puzzled by his thesis.
     
    #10699     Jan 2, 2016
    kinggyppo, ignl and wow12 like this.
  10. Maverick74

    Maverick74

    I do like TAN at these levels btw and yes, it's a confirmed 30 day NL long. I do have some long exposure in SCTY at the moment (also confirmed).
     
    #10700     Jan 2, 2016