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Old 09-23-2007, 01:58 PM
Fulcrum
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Re: DOM games

No problem Brownsfan!

I use ACV (as an additional filter) when I am about to trigger a new entry order from a signal generated by one of the several systems that I trade. If I am about to take a trend reversal type trade, and the ACV is 2:1 or greater in the opposite direction of my entry, I will hold off and wait. If the ACV is 2:1 or greater in the intended direction of my trade, I will take the trade with increased position size (about 50% greater position size). I scale out the added position size as price travels up to the tick levels creating the predominance of the 2:1 affect....or until I see the 2:1 affect neutralized (the remainder of my position I leave on with my normal parameters).

This type of trade set up I have found has a very high probability factor...well over 70% success rate. The other set up I use a lot when I observe the ACV at 2:1 OR greater, is when price is at a very key s/r (or MP) level. When I see the ACV go 2:1 or > in the direction of a breakout (through support or resistance) I jump in with a scalp play for 4 to 6 ticks....works like a champ as price busts out with momentum.....leave some runners on these trades as price can really move when this happens.

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