[ZOSO]

Originally Posted by uexkuell »

To make it short: When you want to trade trends try to start from some quiet region.

The most valuable point you make.

By the time those indicators--especially adx--confirm a trend, a lot of the easy money has been made.

[Tams]

Originally Posted by ZOSO »

The most valuable point you make.

By the time those indicators--especially adx--confirm a trend, a lot of the easy money has been made.

here's a trading idea on ADX:

Why ADX > 20 Is a Lie + Easy Trading Method
http://www.traderslaboratory.com/for...ding-5839.html

[Uli Schmuli]

I use range bars in my trading, and chop (consolidation) is identified after only two bars using my technique. 90% of my trades are taken only on pivot confirmations, as explained in this video I created.

Created with Camtasia Studio 5

Uli

[momentom]

The key is trade location.

If you are a breakout trader, wait for the pullback so if its chop, it doesn't matter. Your trade off is missing the trade if there is no immediate pullback.

Your other option is to be aggressive and enter early, again to get a better trade location so the chop doesn't matter.

[snowbird]

Rgaind,

I'm interested in more details on how you use a fast and slow chart to help avoid chop.

Snowbird

[jonbig04]

I doubt I can add much to what has already been said, but anyways...


To me, everything between my S/R is chop and I don't trade it because I'm not good enough. Now that "chop" may be another's PA wet dream, but its all relative. I look at a larger time frame chart and attempt to find the key S/R level in that chart. If I've done my job, then chop is of little concern. Price can do whatever it wants to between those areas and I simply don't care. I save my attention for when it arrives. Since these levels are built off of a larger time frame, they are more likely to be respected...in other words, the market (providing your level is good) won't chop your level all to hell-which is more than even the best intraday* developed s/r can say for itself. I used to trade intraday and my levels would always get chopped to hell. So, to me, using a larger time frame helps with the chop. I only zoom in (5 sec) when I'm trying to enter.


*I realize that all levels are created intraday at some point, but I'm talking about levels that are noticed and taken account for by looking at days or weeks of data, as opposed to a few hours worth.

[edabreu]

Originally Posted by snowbird »

Rgaind,

I'm interested in more details on how you use a fast and slow chart to help avoid chop.

Snowbird

How to avoid the chop.

Previously mentioned you need to identify yourself as a trader...are you a trend trader, counter trend trader, etc. I agree wholeheartedly.
However, what really is chop? Would you say a trading range of 5 points is chop? How about 3 points, or 2 points. When does it become chop for you?
Is this chop?


Here we have a 50MA and a pair of bollingers. For me, each tap of the upper bollinger and each tap of the lower bollinger is trade-able. It will work until it stops working. So here we have 6 trades. They all worked. The range was 908.25 to about 915. It was clearly range bound, but it doesn't look like chop to some. To me it was trade able because it was a clearly defined range of at least 3 points or more.
So, chop is not necessarily a bad thing, except when its too narrow; or if you fail to recognize it soon enough to either take the first correct trade, or decide in time to just stay out of it altogether.
One of the things I look at is a 1 min chart with a bollinger band set to 8. If price is not at least 3 points, then its chop and un-trade-able. Otherwise, a range of more than 3 points is trade-able if I have the right kind of tool set to handle the trade setups. I like a pair of bollinger's for this at 17,3and 13,2.
Keep in mind that I am a scalper, so every trade gets to first target, and then the runner is gravy.

[BlowFish]

Originally Posted by Uli Schmuli »

I use range bars in my trading, and chop (consolidation) is identified after only two bars using my technique. 90% of my trades are taken only on pivot confirmations, as explained in this video I created.

Created with Camtasia Studio 5

Uli

A simple and elegant way of defining consolidation.