Spotting Breakouts As Easy As ACD

Trading guru Mark Fisher is no ordinary market player. The system he teaches is the
one he and his 75-plus traders at MBF Clearing Corp. use to make a living on the
New York markets day in and day out. Trading everything from basic commodities
such as natural gas and crude oil to volatile stocks, his traders brave the commodity
pits or work from computer terminals. Does it work? Just ask anyone at Fisher’s firm
what they think of the system, and they’ll tell you it does. (For more on his trading
strategies, please see Market Reversals and How to Spot Them.)
The Basics
Fisher describes his ACD system and how it works in a book entitled “The Logical
Trader”. Unlike many in the business of helping traders, he is quite happy to share
the system he uses because he believes the more people there are using it, the more
effective it will be.
Basically, his system provides A and C points for entry of a trade, and B and D points
as exits – hence the name. It is a breakout strategy that works best in volatile or
trending markets with a special group of stocks and commodities (those with high
volatility work best). He frequently uses natural gas and crude oil as examples in his
book, but he also mentions commodities like sugar and a host of stocks. These
references are good tip-offs on the kind of markets for which it is good to use the
ACD…. …

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