Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Thanks FT, I appreciate the insight. I like ACD, however, the exact methods, rules. etc, listed in the book are a little outdated in my opinion. They may still work but definitely have to adapted to todays fast moving markets.
For example, the numbers he lists in his book as a sample OR and Pivot are a lot smaller than the pivots and ORs that exist today. Like mfbreakout had said in an earlier post, the stops are too big if you apply ACD to the current markets especially CL. Its not uncommon to have 50 or more tick stops using ACD, so for the average person its hard to stomach a stop loss of $500 or more dollars. This is the reason I was interested in learning a little more about the noise indicator.
The other thing about ACD in todays market is the amount of overnight moves. When Fisher wrote this book the overnight markets existed but the volume wasn't nearly as great. He talks about late day C moves and how this might be a time when you hold overnight. In todays market overnight moves can be 100 or more ticks.
I would be interested in hearing what you guys think.
@rw1717: The volatility during the US session is still higher compared to the volatility during the European session. If you look at CL for the last 20 weeks, you get the following values for the average hourly ranges (see chart below):
Asian session: 20-45 ticks
European session : 50 - 70 ticks
US session: 80-125 ticks
For the IPE traded Brent Crude (chart not shown) the values are:
Asian session: 20-45 ticks
European session : 50 - 90 ticks
US session: 65-115 ticks
This means that depending on news there can be quite a lot of volatility during the European session as well.
Pivot tracker value of 3 ( Yum) . 12 day cumulative ABCD -5 and 30 days 8. I share my set ups to share and learn. It's in my self interest to fill gaps in my trading.
I do not use Fib and patterns to trade but like to see what else traders are looking at. It helps to look at things differently otherwise ACD box gets pretty boring. This is from a friend.
I do get stopped out 2-3 times a day and have 2-3 losers with stop loss. For my style of trading- 80% of the days CL trading is a battle and then we have 20% of trend days.
