Saw that, something happened last night with all the major dollar and yen pairs. I don't know if Obama or Bernake opened their yap, or what happened. Got stopped out for a small loss. Pivot ranges saved me from a larger one.
Fish does mention that when Pivot ranges contract, a big move is on the way. I saw that with the usdjpy pair. Three day and one day pivot two pips apart. Oh well, hindsight.
Yes and speaking of pivots and volatility, when you have very wide pivot ranges, trading is very difficult. Yet another reason not to "chase" volatility.
Ok. That helps clear it up even more. Thats where I was getting confused. Relative vs absolute, I just did a poor job of explaining.
Another way to use ACD is to watch the pivots on the higher time frames. If price is trading within the pivot ranges or on the wrong side of your daily signal then it could invalidate the trade or suggest you reduce size due the daily signal being either counter trend or consolidation. I noticed that when Mav pointed out to me an A number on a higher time frame on that AUDJPY trade. That could serve as a profit target if a bounce or a pullback from that number is seen. Very nice book this Logical Trader, got me to thinking about how to improve my system again.
I like Joe. He spent 18 years at MBF. He and Rick Santelli are the only ones I listen to on CNBC. So I'm giving him a plug for his new book about to come out. http://www.amazon.com/High-Sell-Hig...0666/ref=sr_1_1?ie=UTF8&qid=1315404223&sr=8-1
Hey Maverick, I typically like to look at what Joe's doing too. Since reading the Logical Trader, (and seeing his name in the dedication) I've tried to keep an ear out for some of the trades he seems to be looking at. Sounds like the book, (just based on the title) is something that'll be of interest to the folks in the forum. Thanks for bringing this to our attention. All, On a trading note, I'm looking at monthly A downs in lots of things so far, and this "rally" the last day or so looks a little long in the tooth, (just based on not getting any intra-day A ups yet today - granted it's early). I'm wondering if other people are looking at the same things, or if I'm grossly off-sides for September. I will say that with all the added volatility as of late I'm less sure of my levels, (seems like on any given day something could just break and scream higher/lower). Anyone have any thoughts on September's action so far? Or are we all waiting and seeing still?
Try your hardest to refrain from passing judgements on the market. It's always good to erase certain words from your vocabulary that are destructive to traders. Such as bull or bear markets, over bought and over sold, etc. Also avoid things like, there is no volume on this rally, or this is just a short covering rally. Just focus on price! We currently have CONFIRMED weekly A ups across the board in all the indices. Do not short this market! Weekly A ups are solid signals. They are momentum trades. Also crude oil has confirmed on the weekly as well as copper. This rally is for real. As long we hold above 1174 on the week, buy the dips in the ES.
Also, we are now back above the monthly A down in the ES. This is one of my favorite trades when the weekly A up is right above the monthly A down and we cross back above the monthly A down to confirm the weekly A up. Solid setup for a low risk trade.