The seminars are fun to watch and there are some good nuggets in there. Unfortunately you have to go through about 7 hours of videos to get them but most the videos are very entertaining. BTW, I use ACD for instruments that have ZERO volatility and it works fine. It all depends on what type of trade you are looking for. Are you a daytrader? Swing trader? Longer term trader? Do you fade moves or chase momentum? It all depends on what you are looking for.
Mav, off topic here but do you find currencies are extremely choppy compared to say ES? I'm aware differing timeframes and all, but liked to get your personal thoughts on FX.
All products go through choppy cycles and all products go through trending cycles. This is why it's very important to make sure you have a way to quantify what cycle you are in. I would be hard pressed for anyone to pull up a chart of EUR/JPY and tell me it's choppy now. Both intra-day and long term the move has been astounding. But then it will settle down and chop around for a month or two. Gold for example is dead right now. But that wasn't the case a year ago where it broke out every single day in a straight line. You'll notice energy products like this as well. Oil and gas will have a nice smooth move then go no where for months. I think too often traders get too caught up in picking direction and not picking the right cycle. If you get direction right and cycle wrong, you probably will lose money. The beauty of ACD is that since it's volatility based, it's almost completely cycle based. Direction is quantified internally through number lines vs looking at a price chart. It's a very different approach most TA. In fact, it's probably completely opposite.
Mav, let me pick your brain a bit. Do the A values stay constant or do you use a % of ATR to include volatility in the calculation in some way or form. Also, A values are symmetrical for up and down, or can they vary as well? Thank you.
Sorry, missed this post. My A values float. They are a function of current volatility. Mine are also symmetrical although Fisher's vary. He has separate A and C values.
Do you know why his A and C values vary?....I don"t think he explained this in his book or on any of the videos.
I think he modified his C values because he wanted to isolate the late day C down trades (or C up). I don't get involved in those trades so I keep my A and C values the same. Again, it's all about making the levels fit "your" trading style.
I thought this article was topical for the thread. It seems some big hedge funds have made a killing on the Yen trade this year. Readers of this thread? http://www.cnbc.com/id/100458645