One of my areas to improve for 2012 is not to trade counter trade unless some REAL VOLUME shows up taking out resistance. DXY with A up, 6e , ES, TF etc.. with A down along with negative market internals were there all day long to guide a trader.
My last trade of the day was at 12.20 pm short from 99.92 and cover as usual early at 99.62. It was a RISK OFF day.
Last edited by mfbreakout; December 28th, 2011 at 03:52 PM.
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The charts do not show the breakout levels and pivots, on which the ACD method is based.
Below is yesterday's chart for CL 02-12. The main ETH pivot (and prior day's VWAP) are located at 100.82. The blue range is the pivot range, which can be considered as a trend filter. The gray range is the night session range (101.72 - 100.68), the red bit is the opening range for the first 45 minutes. Fisher uses 45 minutes for CL, but smaller opening periods for other instruments.
The A-Down level is obtained by subtracting 8 ticks from the lower end of the opening range, the C-Down level by subtracting 13 ticks from the lower end of the opening range. For a valid A-Down, CL should remain at least 23 minutes (half the opening period) below the A-Down level.
A valid A-Down was made at 10:48 AM EST. There was a short signal at 11:18 AM, as indicated by the MACDBBLines (zero line rejection, second entry). As possible targets you could have taken the floor pivot S1 or the prior day's low, which had to be tested.
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I use 45 minutes OR. majority of trader use 5 minutes etc.. 2 cyan lines represent OR. Bullish above cyan line, bearish below, is the first step. Then there are failed A up/ A downs etc.. and a host of other set ups combined with pivot ranges, 30 day number line etc..
I have invested 4,000 hours ( LIVE and SIM) in ACD method. ACD is a logical and easy method but requires time. I will recommend reading MF book. On my charts all bars are blackened out except the one which show an EFFORT on part of traders to break a level. I am not trading chart patterns. ACD is a price based method.
I give OR levels as lines are tough to see on my charts. OR levels are fixed every day for me by 9.15 am eastern time.
Last edited by mfbreakout; December 29th, 2011 at 10:13 AM.
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