The ACD Method

Thx Mav,

When you have some free time, any chance you could help me better understand where B is placed.

I seem to be confused on when he places his stop outside the opening range or the pivot range?

Thx

 

There is no B. It's ACD. LOL.

In the book, Fisher uses the top of the bottom range for shorts and the bottom of the open range for longs for his stops.

 

IOC just ticked off the highs.

 

Still going....

 

Nice smooth spread chart of long oil over short financials.

USO monthly A up and XLF just below the monthly A down.

Are we long the market here or short? Does it matter?

 

Don't you mean "the top of the OPEN range for shorts..."?

 

Long bias

A ---------------------------


D ---------------------------
Opening Range
B --------------------------


C -------------------------

Above A – Go long
B = Long Stop/ Neutral bias
Below C - Short
D = Short stop/ and go home if price hits after making an A up first (total two losing trades)


===============================================================================

Short bias

C ---------------------------


B ---------------------------
Opening Range
D --------------------------


A -------------------------

Below A – Go short
B = Short Stop/ Neutral bias
Above C – Go Long
D = Long stop/ and go home if price hits after making an A down first (total two losing trades)


A & C levels the same for stocks, and often times are called A ups / A downs... A+/ A- (eliminating the “C”)



Book may not reference a “B” level, but videos do – it’s the area to exit the first loser, from either a long or short.., and become neutral biased


Please remember ACD is a framework to trade within, not a trading system in and of itself

RN

 

Most of the time the top/bottom of the OR will be too far away to use as a stop. Time-stops are something that Fisher always mentions. If you are in a good trade, it should work relatively quickly. The trades you want to be in are the ones where other people are exiting and pushing price in your intended direction. If this does not occur, you may be the one trapped LOL.

One thing to note...with the prevalence of HFT and algo trading in many markets there will be alot of backing and filling in some instruments. Mav has talked about this before, choose the instruments that will have real order flow and not just computers providing liquidity!

 

Most definitely

1/2 the OR - for a time stop

His stance is immediate gratification, or get the hell out

RN

 

Yeah sorry, typo.