A month of GBP/JPY through the eyes of ACD Methodology Mark Fishers ACD Methodology from The Logical Trader
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Thursday Jan 31st 2008: 3am - 3am EST
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Comments for Jan 31th 2008:
The opening range was defined inside the upper half of the pivot range. A brief test of the upper opening range ACD line had additional resistance from the upper pivot range boundary. The failure led to an A-Down and shortly after a C-Down day. Price came back up but was not able to sustain levels above the heavy resistance level defined by the bottom of the opening range, and the Central Pivot Point which sat directly on top of it.
Could the system have made you money today?:
1. A-Down was quickly made, but was too quick for confirmation, and failing against the C-Down was another reason not to go short. No signal, no trade.
2. After the initial failed C-Down, price tested the highs only to reverse and make a proper A-Down with confirmation followed by a proper C-Down signal as well. If you use the pivot range to help confirm trades you may have ignored the A-Down as the bottom of the range was located at the midpoint of A and C Down. This creates some unwanted support for any Bears looking to short an A-Down, and reduces some probability from our signal.
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