Stocks are probably 100 times easier then crude if only for the fact that when you walk into the casino, you get to pick the table you sit down and play at. With crude, you sit at the same table every day.
Quoting Mark Fisher from the book on page 57 " Going long at a Point A up after the market trades through the pivot increases your confidence to make the trade. Putting your stop just below the bottom of the pivot range minimizes risk". If one has daily pivot tracker value , 30 days number line, where did price closed yesterday in reference to daily pivot range, daily pivot etc and have above mentioned set up as shared by RGC , it's a joy to watch when this set up plays out.
Agreed. It is probably easier for some one with your experience to find new stocks every day to trade. As Steve Cohen of SAC capital said " Problem with most of the traders is one day they trade aapl, next day NFLX and third day PCLN and in the process never developing expertise in one industry. In our firm everyone develops core competency in one sector and that's all they trade". Having quoted Steve Cohen, I see enough traders at SMB Capital in New York day trade new stocks every day ( stocks with news, earnings or some other form of catalyst- they by the way do not use ACD system) very successfully day in and day out. But these traders have lot of screen time and experience behind them. I just found it easier for myself to just focus on crude Oil and get as many nuances cleared up as possible. Like mark Fisher says , once a trader gets comfortable with his/her ACD approach, then anything with VOLATILITY and LIQUIDITY is trade able. I am not at that point yet.
I wasn't trying to imply that. By the very nature of ACD, everyones levels will be different. So there is no magical level. I thought That the value of ACD is by using the different indicators in the methodology, as sort of layers, the more that they line up, the better your chances or success. And not only that, but I thought that how a stock or security behaves around certain levels or zones is the value of the system. I was just bringing up an idea I had to look at how different stocks behave in the recent past.
Thanks I found the one with the 3 day rolling pivot range...an indicator for the daily pivot range would be great too, but this definately helps.
Thanks John. Sitting at home now with a really bad sore throat. Feels like tonsillitis, hopefully I'll be good to trade tom. After I feel better we should def meetup for a drink or something!
I have a three day rolling PR of 3 cents on the SPY and a 20 cent daily pivot range. 3 day is the smallest I have seen from the past couple weeks. Maybe we will be in for some volatility tom.