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@lemons: Thank you for your good intentions, but the chart setup is completely false. You have applied US trading times to an Estonian chart, which leaves you with part of the night session. The chart is unusable.
I have been working on it, but not yet published it. The point is that you cannot calculate the A and C values for futures by using the formula from the book, but you would have to subscribe to the values and then enter them manually.
Attached is a chart that shows the pivots and an indicator which plots (but cannot calculate) the A and C values.
Trading: Equities, index options and futures options
Posts: 192 since Apr 2010
Thanks Given: 67
Thanks Received: 203
During one of the webinars he mentions that the A & C for stocks are always the same and gives the formula, which if memory serves correctly, is based on the ATR. For futures you would need to input the values since they change over time and I could never figure out what they were based on. That is one of the main reasons I traded stocks instead, much simpler.
So let me get this straight. The values in the book are un usable? How would one find the opening range for crude oil CST? Also im loooking for the correct amount of ticks from the opening range For A values and C values. The book is not very clear and there is alot of mumbo jumbo on forums but nothing that has seemed to be cut and dry. Please help! thanks
Most used OR is 8:30-9:15 EST (45 min) with A=8 & C=13. If you use a different OR, then the A & C values should be adjusted as well. This goes for CL and will be different for other instruments.
Before you attempt to beat the odds, make sure you can survive the odds beating you.
Trading: Equities, index options and futures options
Posts: 192 since Apr 2010
Thanks Given: 67
Thanks Received: 203
How valid is the concept of an opening range today? Stocks and stock index futures still have a valid "opening" at 9:30 NY time but most commodity markets no longer have that same volume spike when the pits open and there are no pits anymore for the ICE (NYBOT) futures. Gold and oil volume jump well before the Comex and Nymex floor opens and the increase is more gradual that it was when the pits ruled supreme. Just curious since I don't trade those markets or use ACD anymore.
@Bookworm: I think you ask exactly the right questions. A breakout play is something that is similar to an option position called straddle. You really need rising volatility for your game to yield a positive expectancy.
The opening range is just a reference range, which is setup prior to the expected rise in volatility. Mark Fisher's book was written 10 years ago, and with the predominance of electronic markets today, the concept may require some modifications.
First of all Mark Fisher's opening range is no more aligned to the open of the regular sessions. If you subscribe to his value sheet with A" and C" values you will find out that he has shifted the start of the "opening range" to 8:30 AM. This reflects the need to include pre-session trading. The opening range now only includes the first 15 minutes of the regular session, which starts at 9:00 AM.
This leaves us with further questions:
-> On Thursday and Friday usually news events push the markets around 8:30 AM, which suggests to shift the opening range to earlier hours on these days.
-> Even on the other days, 15 min into the regular session seems to be late to start with a breakout trade, I would not hesitate to enter earlier, if CL hits a pre-established breakout point.