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I hate this choppy market 31 replies

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  • Post #1
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  • First Post: Feb 17, 2006 6:34am Feb 17, 2006 6:34am
The market seems really choppy at the moment, hard to pick a winner. Anyone else experiencing this? Why is the USD/Yen heading north? Thought it was supposed to be heading south for the winter!

Trumpcard
What do you mean it was supossed to head south? how can anyone know where it's going at all? Im sure fundamental analysts would be able to give you a complicanted explanation in hind-sight, but I consider those opinions meaningless. I very much doubt any of those analysts would be able to make money real-time in front of a trading station.

That is why, in my opinion, you're better off following along the market once a move has originated and further confirmed rather than trying to predict it before hand (known as trying to fish tops and bottoms in the trading lingo). In my opinion, once agian, Forex is all about riding along trending swings and stay out of the market (for as long as it takes) while it's choppy.

Patience is a trader's number one virtue. If you dont like or understand what you see on your chart, switch off the computer and come back tomorrow.
thanks for your reply WTB! i agree totally, better to wait for a confirmed move...
I love choppy markets. They are relatively easy to trade - support, resistance, fibo, etc. It's better than waiting around for the big trend. At least you get to make some money. Keep your eye on the 1 hour and 4 hour charts, and it becomes quite apparent, where to go long or short.

My 2 cents worth.
I love choppy market too. I earned totally about 200 pips on this past wednesday with the major pairs(EUR/USD, USD/CHF, USD/JPY). I guess some of you may need to develop a strategy on range and choppy environment since the market are in range most of the time.
Looking for pips!!!
I need to look at the market at all time scales. When people say it's choppy or whippy, they're usually talking about a 10-minute chart or something. I don't like to trade at that level because I hate paying the spread over and over again.

If at the 1 hour level an open position becomes too choppy, I'll close it ASAP.

ASAP for me includes: Whenever I open or close a position I wait for the perfect moment on the 10, 5, and 1 minute charts to pull the trigger and get the best price.

I hate paying the spread.
Quoting bensonchan
I love choppy market too. I earned totally about 200 pips on this past wednesday with the major pairs(EUR/USD, USD/CHF, USD/JPY). I guess some of you may need to develop a strategy on range and choppy environment since the market are in range most of the time.

hi all,


look ,choppy market can be rewarding 30 % of the time ,BUT through my experience, 70% a devastating strategy to trade .

in my opinion, why i have to rush into a trade ,i'm not in a hurry i wait for the fat cat, and i know patience always pays.


wish you all good luck.
Patience is the key to forex. Choppy markets or for that matter range bound markets are great to trade if you wait for the right moment. I don't trade every up or down move. Trading for 5 pip moves is stupid. I look at the over all picture in 4 and 1 hour charts to tell me where to go short or long. Then I look at the 10 minute chart then for execution you look at the 5 minute chart. I try not to take a trade unless I feel there is a 50 pip move in my favor. My style is baiscally buy or sell when the up or down momentum has been exhausted. I wait for a spike to trade against. As a rule if I have 50 pips or close enough proft I usually just take it.

Trading choppy markets is kind of hard to explain. When you're in tune with what the market is telling you, technicallly and fundamentally, you just know when the excitement or despair is beginning to wear thin. A lot of the time I just put in a sell or buy order at a predetermined price based on my gut feel that the exhaustion wil happen there. The trade initially usually goes agains me a bit, but in end when there is money on the table, hopefully 50 or more pips profit lying there I close out.

It's hard to explain my trading style - because I look at news, charts and my perception of the overall market -all of which result in a gut feel that "now is the time" to put on a trade.

My 2 cents worth.

By the way I used to trade stocks and commodities but found that forex is fun. You don't have a universe of stocks to look at. You pick your favorite pairs, get to know all about the economics and trends. Forex is simpler to trade.

If you're not having fun quit for the day or week until it comes back. My other 2 cents.
The real key to trading forex is to take chunks or profit out of a move. I have given up on the big move - they can happen and I have had the good fortune to recognize it and wait a bit longer, sometimes days. In my experience, it is better to consistently make money on a regualr basis rather than gamble on the big win. I am currently 46 days without losing money on daily trades. It doesn't mean that I don't have loser trades but I have managed to end each trading day at a profit, however, small it may be.

As I mentioned before I have traded stocks as well. I actually did quite well. But I grew tired of the sheer number of stocks to look at. I decided that I wanted to trade something that is simpler, less time consuming. more volital (which translates into potential profits} and more fun since I happen to be a fan of international affairs. The only drawback to forex is 24 hours a day which can mean a lot of wee hours of the morning waiting for your trade to mature.
Quoting Teddy
I love choppy markets. They are relatively easy to trade - support, resistance, fibo, etc. It's better than waiting around for the big trend. At least you get to make some money. Keep your eye on the 1 hour and 4 hour charts, and it becomes quite apparent, where to go long or short.

My 2 cents worth.
i agree the only charts i have open all the time are 1hr and 4hr charts i use no traditional indicators only pp, support, resistance, zigzag and shi channel, the price almost always hits these points or very close then i make the call it takes patience and discipline but it becomes very predictable. i only trade eur/usd. (my nerves can only handle 1 currency pair )
whether its choppy or not becomes less of an issue...
Quoting Teddy
It's hard to explain my trading style - because I look at news, charts and my perception of the overall market -all of which result in a gut feel that "now is the time" to put on a trade.
I wont try to judge your trading style Teddy, but beware of the "gut feelings". I personally dont believe in them. My opinion is that one must execute the trades following his/her system with ice-cold blood. Gut feelings are potentially dangerous.
I wont try to judge your trading style Teddy, but beware of the "gut feelings". I personally dont believe in them.
Quoting WTB
My opinion is that one must execute the trades following his/her system with ice-cold blood. Gut feelings are potentially dangerous.


Hi ,

yeah ,surely ,your right , in my opinion there is no such thing as Gut feeling or guess work in forex ,there is only strategy to stick to it and never give it up to survive in this gigantic market.


in my opinion the fx trader must take fx trading as a profession and keep promoting it and do what it takes to not to break the rules of the game .

that easy ,breaking the rules = game over

GUT FEELING is not included in my forex kit to use ,simply because it makes me feel that there is a fish in the ocean and i dont know when that fish will bite my bait.

take care Teddy ,
Quoting mwbro
i agree the only charts i have open all the time are 1hr and 4hr charts i use no traditional indicators only pp, support, resistance, zigzag and shi channel, the price almost always hits these points or very close then i make the call it takes patience and discipline but it becomes very predictable. i only trade eur/usd. (my nerves can only handle 1 currency pair )
whether its choppy or not becomes less of an issue...
Can you tell us more about what you use to determine s/r?
What is the 'shi' channel?
What PP do you look for? All patterns or only specific ones?

(Always interested in learning more...)
  • Post #14
  • Quote
  • Edited at 10:45am Feb 21, 2006 10:37am | Edited at 10:45am
Quoting CescoAiel
Can you tell us more about what you use to determine s/r?
What is the 'shi' channel?
What PP do you look for? All patterns or only specific ones?

(Always interested in learning more...)

hi i attached a pic of my 1h and 4 hr chart notice the following:

4h chart i have a channel (SHI channel) and zigzag, i use this chart for trend (trend is definitely my friend)
1h chart i have a channel, zigzag and S&R levels (pivot points)
when the zig or zag appear it usually reaches near a S&R level and these levels are tested and if a rebound occurs you know its time to buy or sell
im trying to focus more on the 4h chart and just use my 1h chart for entry and exit. Even if your timing is not right in entering the trade (S&R levels tested and further break occur) the trade will almost always go in you favor eventually just have patience.
I like working with zigzag it measures price movement (bar charts can get pretty congested at times)
by the way on the 4h chart the last zigzag notice the color difference (which i call the zag) is my self-made trendline im predicting price direction (positive thinking ) the real zag will eventually show up.

im still doing much testing so nothing perfect

by the way ive been going short on eur/usd since monday
Attached Image
Quoting WTB
I wont try to judge your trading style Teddy, but beware of the "gut feelings". I personally dont believe in them. My opinion is that one must execute the trades following his/her system with ice-cold blood. Gut feelings are potentially dangerous.

Whatever, everyone has his method, but I find that "gut feel" or intuition has worked better for me than any computerized indicator every created. You have to be in tune with the market - that's all.
BTW Cable has been choppy today. I had a wonderful time trading that based on support, resistance and gut feel. Now I'm just waiting out the MPC minutes and see where the market tells me to go.
I just got out of a NZD short for 48 pips, decending triangle pattern and waiting for a break down - based on intuition, just knowing that this sucker is going to tank.
Quoting Teddy
I just got out of a NZD short for 48 pips, decending triangle pattern and waiting for a break down - based on intuition, just knowing that this sucker is going to tank.

I guess I covered too soon Oh well, you can only get chunks out out of a move anyway, but 48 pips X 10 lots is not pocket change either.

Still waiting for GBP MPC to put on a trade.

I don't mean to boast or be brash, but I've had one profitable day trading so forgive me if I'm going overboard with exuberance here.
I can't figure out what to do about the MPC reaction, my buy order was not filled by 4 pips, but now I can't decide to short or buy. It's been a long day - I've traded the Eur, GBY, JPY, NZD. CAD. and the Swissy - all them profitable. thank goodness.
Again, I don't mean to boast about my trades yesterday. But after an 18 hour stretch of trading I couldn't help myself.

Today the markets look very choppy again, Who cares! Taking the day off, going with my son on a school field trip. Got to catch up on life now and then.
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