The ACD Method

Natty gas failed at the weekly A up. I'm waiting for a confirmation.

 

Copper bounced off the QTR A down to the tick.

 

One of the best posts of the thread. I think psychology is probably one of the most important topics that usually gets skipped over.

 

You're over trading King!

 

hardly in and out before they get my dough! whats your thoughts on aapl today?

 

Intra-day A down in AAPL is 554 and the weekly A down is around 550. Nothing to do here. I do own a cheap upside fly into earnings. If they miss and get killed, I'm all over the risk reversal.

 

I wrote the following number line rules based on the examples in the book. Do you see any errors that I made and need to correct? I hope the formatting works! Thanks for any feedback.

ACD Number Line Analysis

The number line is a -4 if:
• The market confirms an A up then on the last bar of the day makes a C down.
• The market confirms an A up then subsequently makes a C down and closes below the OR.

The market line is a -3 if:
• The market confirms an A down, then attempts to make a C up but fails and closes in the OR.
• The market attempts to make an A up, then makes an A down and closes below the OR.

The number line is a -2 if:
• The market confirms an A down, stays below the OR and closes below the OR.
• The market trades on either side of the OR then makes an A down and closes below the A down value.
• The market makes an A up, attempts to make a C down then closes above the OR

The number line is a -1 is:
• The market attempts to make an A up then makes an A down and closes in the OR.
• The market attempts to make an A up never attempts an A down and closes below the OR.

The number line is a 0 if:
• The market makes an A down but does not close below the OR.
• The market makes an A up but does not close above the OR
• The market makes an A up, then makes a C down and closes in the OR.
• The market makes an A down, then makes a C up and closes in the OR.
• The market makes an A down followed by a C up followed by trade below the OR, regardless of close.
• The market makes an A up followed by a C down followed by trade above the OR, regardless of close.
• The market attempts to make an A up followed by an attempt to make an A down then closes in the OR.
• The market attempts to make an A down followed by an attempt to make an A up then closes in the OR.

The number line is a 1 if:
• The market attempts to make an A down then confirms an A up and closes in the OR.
• The market attempts to make an A down never attempts an A up and closes in or above the OR.

The number line is a 2 if:
• The market confirms an A up, stays above the OR and closes above the OR.
• The market trades on either side of the OR then makes an A up and closes above the A up value.
• The market makes an A down, attempts to make a C up then closes below the OR.

The number line is a 3 if:
• The market confirms an A up, attempts to make a C down then closes above the OR.
• The market attempts to make an A down, then makes an A up and closes above the OR.

The number line is a 4 if:
• The market confirms an A down then on the last bar of the day makes a C up.
• The market makes an A down then subsequently makes a C up and closes above the OR.

 

King! I gave you this trade. We bounced 7 pts off the failed intra-day A down!

 

thanks Mav, done now till earning time.

 

Mav how is your etf spreading going? I will not mention "He who shall not be named"