Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
BLZ, $TICK inside +/- 800, ie not hitting extremes, or even distribution of # of times it has hit extremes. And SPX failure to break previous days high or low
it's is most definitely an interesting topic. i personally see the need for a good chop indicator if you are trading in a purely systematic manner. while it is easy to eyeball a chart and see chop, i am still trying to find a suitable chop indicator for a systematic strategy.
i have tried the kaufman efficiency ratio, the keltner SNR, vhf, and am tinkering with the damiani volatmeter. i tend to look at daily (not intraday) data....any thoughts?
have any of you tried teh damiani volatmeter? any ideas for good settings for daily charts?
ADX is a very good chop identifier, < 20 means choppy and stay away. ATR is good voliatity indicator which can also sometime tell you if it is range or trend
I use volume as a basis to identify chop... when markets are trading slowly, it is more likely than not that you will be in chop. If trades are occurring quickly, it is more likely than not that you are seeing a trend. So when you see trading start to speed up, be prepared for trending movement.
very good, no vol no go. I know PA guys are going to say 'hogwash' but lets ignore that and go back to the volume, here is a proof without even looking at price you know when its going to chop.
1. At what point, real time, do you know you are in chop based on volume?
2. Once you realize this, do you ignore all price action / everything else, and wait to trade?
3. At what point do you know you are no longer in chop and 'safe' to take another signal?
4. What time frame and instrument are you looking at in this screenshot?