ACD Method

[feb2865]

Hello everyone

I was in the chatroom today (I had a great time by the way) and somebody, I believe was Nasdaq5048 said something about ACD Method of Mark Fisher. I haven't read the book yet but as far as I read and talk to other traders, I see some logic especially on opening range strategy. I am curious.

I would like to see some comments on this method, especially what do you determine as an opening range timeframe for whatever market you're trading.

Regards

Raul

[MrPaul]

	Quote:	feb2865
	Hello everyone I was in the chatroom today (I had a great time by the way) and somebody, I believe was Nasdaq5048 said something about ACD Method of Mark Fisher. I haven't read the book yet but as far as I read and talk to other traders, I see some logic especially on opening range strategy. I am curious. I would like to see some comments on this method, especially what do you determine as an opening range timeframe for whatever market you're trading. Regards Raul

I just bought the book today...I would also like to know if anyone has been able to successfully apply the ACD method

[nasdaq5048]

It depends on the market. It depends on your time horizon. It doesnt really matter what timeframe you use. Fisher likes to use 20 min for stocks, and 5 min for grains and true opening range for energies.
I just view the A as the Initial balance high, and B as the opposite end of the initial balance.
But, one thing is for sure, late day pt C reversal works really well in energies. I am not sure whether it is because 60% of the locals on the NYMEX know to a certain degree about ACD or what. But, it works great.

[torero]

Now, I'm curious to buy the book too. Nas, now you've really opened up a Pandora's box!!!

Ok, once I have the book, I hope you'll be around the chat room to answer questions and walk us through it LOL!

[feb2865]

I read the first chapter and seems interesting. He doesn't say where you should have an entry but I read somewhere that possible entry range is something that they provide in a daily basis depending on the market. I smell some co$t involved.

The problem with this type of strategies is that if you have a significant S/R - Pivot line nearby and there's not enough meat for a rally, chances are you get halted on the line.

Maybe it will work better on energies and grains, like nasdaq said

Maybe will work within a 1 to 1-1/4 point deviation from A/C on ES and 4-5 points on YM but this is just a theory. Again all depends on how far/close the price is from any significant level. Anyway, any deviation from the channel has to be done as the market shifts from one price range to another.

To me this is another version of a channel breakout system. But it's a better one because you don't play the breakout as the market pulls away from the channel. Another thing I like is about timing you entries.

Raul

[MrPaul]

The more I read and analyze the book I am seeing how at least with emini's, the ACD method may be more effective on a longer-term timeframe i.e 3 to 5 days with a 30min chart. Although this is just a preliminary opinion.

[torero]

Does anyone have a chart so I can get an idea what you mean? I don't have the book so I have no idea in my head what it looks like. Thanks.

[MrPaul]

	Quote:	torero
	Does anyone have a chart so I can get an idea what you mean? I don't have the book so I have no idea in my head what it looks like. Thanks.

This was the best I could find...

Spotting Breakouts As Easy As ACD

[torero]

Excellent article! Thanks, MrPaul. Mentions forex as good candidates for Fisher system but problem is the dang market is 24hrs, where do you start and end the 15min open range?

[MrPaul]

	Quote:	torero
	Excellent article! Thanks, MrPaul. Mentions forex as good candidates for Fisher system but problem is the dang market is 24hrs, where do you start and end the 15min open range?

In the book he mentions it as being the instrument's domicile market.

From pg. 11

"There is one important consideration about the opening range, and that's making sure it's based on the domicile market. What do I mean by that? If your trading natural gas futures, then you know that the domicile market is the New York Mercantile Exchange. That's where the opening bell is established. But if you were trading say, Japanese yen, the the opening of the U.S currency markets wouldn't apply. Rather you would look to the opening of the Japanese markets...."