A month of GBP/JPY through the eyes of ACD Methodology Mark Fishers ACD Methodology from The Logical Trader
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Tuesday Jan 22nd 2008: 3am - 3pm EST
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Comments for Jan 22nd 2008:
As we had drawn our 'next day' pivots for the asian session (I personally calculate them from the end of the NY going back to the previous day), we can see how price raced up and bounced off the Pivot during the opening range period. Once broken the opening range and the pivot together established a stronger level of support right at the A-UP. The A-Up signal is particularly strong on this day because of this. You can trade well off this kind of support.
Could the system have made you money today?:
Such volatility with some big news first thing can be scary but this system builds its boundaries out of whatever happens during this period. Trading off the ensuing ACD lines should give you confidence to trade the aftermath.
1. A-Up was broken with many good signals on multiple retests, and being just above the central pivot. It was a big news day so volatility was all over the map so tight stops would have been advisable this day.
2. After multiple retests of A-Up, we achieved a C-Up day and an upwards bias because of this. Price action broke back below but with the Pivot and A-Up nearly sitting on top of each other we had good support. Sticking to your guns following the ACD rules and taking profit professionally would have made you a lot of money on this day.
3. Even after a 300 or so pip move up to the peak of the day, in the Asian session price came all the way back down to test the Pivot range top. Again, another example of the importance of plotting Pivot levels!
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