[edabreu]

[quote=markl67;67746]

Originally Posted by edabreu »

A 133 is too fast for me. I use a 6range/4range combo. I use a 10HMA.

What do you mean by 6 range/4 range combo? Thanks.

It's like a higher time frame, but in this case a bigger price bracket on the bar.

[jeffx]

Here's a good way to determine chop, any time frame

Note that this works great on FX, although the trader who taught me this trades just about everything that moves.

Fib retracements - do fib retracements between most recent significant swing highs/lows, in both directions (1 retracement up, 1 down) If price is moving between .786's, you're definitely in chop.

CCI works GREAT, if used properly. It is NOT an oscillator like a stochastic, it is much more of a momentum indicator. If it's staying OB/OS, that's a great indication that you are in a trend, or momentum is in that direction.

Try this -- throw a 50 period CCI on your chart. Above 0 = uptrend bias, below 0 line = downtrend bias. Watch what happens to price when the CCI breaks the 0 line, and especially when it breaks the 100/-100 lines. You are NOT looking for a reversal if CCI breaks below 100 or above -100 lines, that is only an exit indication.

Lastly, if the CCI 50 is just bouncing between 0 and 100 or 0 and -100, without breaking a "line", that is another good indication of chop.

Is it perfect? No! Will it give some false signals? Yes! But I've found no other indicator that is more accurate. For more info, google CCI Dr. Bob (free info) and you'll also find some great setups with CCI. This is NOT the way Woodie teaches it, it's much better IMO.

[waveslider]

ZDO -
thanks for that post. Agree with you about Ross hook (though I had not tested it, figured it wouldn't work so well unless obvious momentum conditions). Also agree with you about JMA, which I use. I also use a short term JMA to help identify waves.

[zdo]

waveslider,

re: "I also use a short term JMA to help identify waves" a fast noLagMA or jtHMA might work slightly better for identifying waves than JMA - mostly a matter of taste though...

[BlowFish]

Originally Posted by waveslider »

ZDO -
thanks for that post. Agree with you about Ross hook (though I had not tested it, figured it wouldn't work so well unless obvious momentum conditions). Also agree with you about JMA, which I use. I also use a short term JMA to help identify waves.

Ross Hook's will often trigger a traders trick entry but fail if it is actually a two legged correction. As you say momentum is often a good clue that you are only in for a short single leg correction.

[legout]

Identify the range, and wait for a breakout? Trade the first pullback in new direction? Or anticipate which direction and get in at the opposite side of range?

legout

[Jabo22]

For trend trading , I use tend channels and market structure at a higher timeframe.
Higher HIghs/Higher Lows =UP trend, Lower HIghs/Lower Lows = Down Trend. The 10 minute chart is my favorite and I use the 60 min trend line/channel and market structure off the 60 minute to keep me with the trend. Climactic or ending price/volume action usually leads to chop or balance or ranging. To be honest, I use pit noise Traders Audio for the S&P pit and when Ben calls "choppy trade" or "Local to Local" trading, you know its chopping around and it's dead nuts on.

[david22]

try using market internals like advancers vs decliners,
up volume vs down volume, tick, trin etc..