ACD trading By Mark Fisher

December 29th, 2011, 10:39 AM

mfbreakout

pre market chart for 12-29-2011. Oil inventory at 10.30 am. Daily pivot range 100.41-99.86. 3 day rolling pivot range= 100.44-99.87

A down in DXY, A up in ES, TF and CL no confirmation due to pending oil report. CL had A down for lower time frame like 5 minutes etc.. I just extend my OR to accommodate oil report. I do use lower time frame OR to trade while waiting for extended time frame OR to confirm.

Mkt. internals have been positive right from the open. Oil report at 11 am.

December 29th, 2011, 10:54 AM

12-29-2011. only 1 trade so far- 10.50 am

December 29th, 2011, 11:28 AM

These trades are beyond ACD. However, using ACD reference points to define risk vs reward.

December 29th, 2011, 11:48 AM

Fat Tails

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.

Chart attached:

My lines are there but sometimes not clear as I have quite a few levels. I do however, write down OR levels on charts just as reference for traders who are new to ACD method.

December 29th, 2011, 12:22 PM

Fat Tails

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.

Chart attached:

Ok, now I don't feel as dumb. haha....

Thank you as always @Fat Tails.

December 29th, 2011, 12:23 PM

mfbreakout

These trades are beyond ACD. However, using ACD reference points to define risk vs reward.

I will pick up that book soon. My interest is peaked...

December 29th, 2011, 02:14 PM

ACD in action- end of Oil pit Close. It's tough to trade CL with indicators, @ 99.84, every indicator was bullish (lol). Late day A up are very RARE. If CL had broken above 99.90 on VOLUME, I would have tried long on pullbacks.

December 30th, 2011, 12:04 AM

@ mfbreakout

About how many ticks do you average per day.

December 30th, 2011, 08:27 AM

rw7117

@ mfbreakout

About how many ticks do you average per day.

100 ticks- It's a nice round number. My area of improvement is to get 100 ticks with size. That's a GOAL for 2012. By size , I mean 10 cars and up. Target for each trade ( on 70% of trading days) is 30-40 ticks with 10 ticks stop loss. I do get stopped out 2-4 times every day.

My style of trading calls for to put trades out and find levels after doing analysis. 6-10 trades a day. For example, since 7.30 am, I am buying 98.84 and booking profits around 99.10. Trading box is 99.80 to 99.30. 2-4 scalps along with LUCK ( very important for me) and one has 60 ticks or more. I will not buy at any other level but 98.84 with stop loss 98.79 and book profits @ 99.10. Once either 98.80 or 99.30 is broken, I will have to find a new box and trade edges of the box. This is prior to 9.15 am , when my OR is formed. After 9.15 , OR reference points become important.

January 1st, 2012, 10:24 AM

Most important book in my trading career. As i go over my notes from January2011 - December 2011, I can see why Mark Fisher book " The logical Trader" is the most important book for my style of trading. It's not for everyone as the method needs to fit one personality in the end.

And for understanding Market Structure, Market Participants, Auction Market, Mr. Jim Dalton book " Markets in Profile" is the ONE for me.

HAPPY NEW YEAR and MAY WE ALL FIND HAPPINESS IN OUR TRADING AND LIFE in 2012.

ACD trading By Mark Fisher

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ACD trading By Mark Fisher