Ok thanks that was helpful I'll be delving more into the book and this thread more (I'm 1/3 through it). I'm still having some difficulties understanding how to calculate A and C values. I'm not looking for specific levels as I understand that it depends on each traders style and personality. Where I'm having trouble is whether the ATR to use is a daily or just the opening range ATR? You seem to be saying that it's the opening range ATR but Mavrick says on the first page that you can come up with the values using a 5 or 10 day ATR. That's why I'm confused I began reading this thread before getting the book thinking values are calculated using a daily ATR. Can you clarify this for me?
... each of which may be unique... (y'know, just to make it more complex) but seriously, in terms of intra-day, I've always had luck with the values Fisher had on his old website: 20-25% of the 30 day ATR Just start playing with the values, and you'll find what works for you.
LOL! @ way back in the thread. I will sit down one of these YEARS and sift through it all to get up to speed on the whole course of the discussion but I do thank you for providing a synopsis of what was discussed. I can definitely get down w/ that hypothesis @ volatility affecting A & C values. I had never considered that for two reasons: 1. The modified version I traded didn't include A & C values in the traditional sense and 2. my mentor's philosophy was one that didn't allow for fixed stops. It was always based on price reversing, crossing over to the other side of the opening range, and that bar closing on said opposing end. That bar could, in theory be a steep / tall one and this was part of the test, I believe (he was the type to tear down the walls of sanity to assist in the rebuilding even stronger ones). However, I've since refined the method by adding another filter to assist in reducing running losses and allowing winners to run. Again, this is all ideas w/o real execution yet. Now that's not to say I'm not interested in learning more about the way(s) it was originally intended as well as other's own unique spin on things. Nothing like a little dialogue to expand the ol' thinky thing. Looking forward to making this my primary strategy, indefinitely!
I'd absolutely be up for that! Actually, I was planning a rollerskating trip up to Chicago around that very time so it's perfect timing. Please keep me posted. I give thanks!
Hey King, you are invited as well! Outdoor patio...we usually have 10 to 15 traders there...always a good time. This is where I reveal what the secret A levels are...
daily average true range, enclosed is a chart with the daily average true range for es daily chart. The range of the range is from a low today @15.97 to a high of 22.65 you can take x% to plot A and C values. Maybe use 18 here.
Crude oil is in the process of confirming a monthly A up. Equities look choppy but energy might take off here.