Thanks, this explanation is helpful. To narrow it down, if I understand you right, you're saying the ranges can be measured mechanically, but the real value comes from using both volatility and time as the main variables by which you evaluate price action. Classic TA is mostly just concerned with price history. I don't yet have a sense of how ACD can be used to compare different instruments, but seeing what you guys are talking about here helps a little. My past attempts at cross-market comparisons have created way too much complexity. The reason that ACD appears to clarify what I'm looking at with my own system, so far, is that it helps <i>visualize</i> volatility. An expansion of volatility is a secondary effect of the setups I take, but it's not something I've tried to deliberately measure and trade off of. Gives me food for thought for testing certain ACD hypotheses. Thanks again for your insights.
What you wrote is an excellent explanation for those looking into this. It doesn't exactly get at what I was asking (i.e., how is this not a flavor of TA which is susceptible to being diluted with more people using it), but I think Maverick provided some ideas along those lines that makes a bit of sense to me. Many thanks.
Wow. Lowest ISEE reading I have ever seen. http://www.ise.com/WebForm/viewPage.aspx?categoryId=126 Low is bullish btw. Usually market bottoms happen around 50 to 60 on the ISEE. Tops around 200 to 250. Today's low 31!
Market is certainly over sold. But this is where ACD keeps your discipline in check and keeps you from trying to bottom pick the market early. Was not expecting to see the VIX at 50. These selloffs in August can be brutal as there is no liquidity and no one wants to make large capital commitments in August.
Maverick, today's fed statement explains what you saw with ACD on August 2 in bonds, which at the time seemed weird. Who knows these things before they are announced?
I'm not sure what the difference is. I think it's the same. sometimes we simplify things and it comes across as something new. All these chart patterns and stuff all come from a deep analyses. What i see is this being a possible difference: TA would not memorize a pattern but will recognize it when he does his magic. While others will have taken the TA's ideas, simplified it and made some memorable patterns that one can easily spot. So one uses the others ideas simplifies it and focuses on memory. while the other develops and does studies to identify patterns. Even a moving average in the end is TA. Its manipulating data to find a trend. Just my thought i dont even know what acd is but sounds like it may have some thing to do with my style