What is your best chop indicator to keep you out of choppy markets? | Page 3 | Forex Factory

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What is your best chop indicator to keep you out of choppy markets?

  • #41
  • Jul 16, 2020 5:10am Jul 16, 2020 5:10am
Chop on the 5m Dow has been killing me this week. My back-test shows a positive expectancy of about 40% win rate and 4R for each trade. But lately, from taking these trades mechanically, not only is my capital being depleted, but my mental capital is too!

I have just gone up one time frame to 10m in the hope that its less noisy.

If I think of it logically, my mentor would say 'stay out' and 'cash is a position'.

A part of me which wants some action says keep taking these mechanical and discipline trades and statistical probabilities will play out.
  • #42
  • Jul 16, 2020 8:53am Jul 16, 2020 8:53am
Quoting DowFiend
Chop on the 5m Dow has been killing me this week. My back-test shows a positive expectancy of about 40% win rate and 4R for each trade. But lately, from taking these trades mechanically, not only is my capital being depleted, but my mental capital is too! I have just gone up one time frame to 10m in the hope that its less noisy. If I think of it logically, my mentor would say 'stay out' and 'cash is a position'. A part of me which wants some action says keep taking these mechanical and discipline trades and statistical probabilities will play out....

I don’t know about your system but the higher you go on time frame the more reliable it would be, the downside being less trades, but if it is for a better profit factor then you might being more profitable. Also you could risk more per trade if you aren’t risking too much already of course

It is like trying to go from France to England on a surfboard, very rewarding indeed you might brake a world record, but once a storm or a big wave hits you, you are in the water almost drowning while with a boat you would make it, safe but boring without anyone acclaiming you an de not much rewarding.

Better be safe than sorry.
LDFX Trading Ltd
  • #43
  • Jul 16, 2020 9:28am Jul 16, 2020 9:28am
Quoting LDFX
{quote} I don’t know about your system but the higher you go on time frame the more reliable it would be, the downside being less trades, but if it is for a better profit factor then you might being more profitable. Also you could risk more per trade if you aren’t risking too much already of course It is like trying to go from France to England on a surfboard, very rewarding indeed you might brake a world record, but once a storm or a big wave hits you, you are in the water almost drowning while with a boat you would make it, safe but boring...
I buy 1H and 5m pullbacks on the Dow & Dax when it's trending.

Yes that's what I was thinking, the higher the time frame the more reliable. My main set up is off the 1 hour charts but what was happening is whilst waiting for the setups, which sometimes takes 6 days, I would start boredom scalping on lower time frames which is outside of my system, which would always lead to a emotional meltdown then revenge trading. So I tested a similar set up to my main one which I could implement on the 5m whilst waiting for my main 1 hour trades.

So far it seems I have to be patient and wait for the 5m to break out of the chop, then start looking for entries. I was down 140 points over 8 trades, now, when it broke out I closed 1 at +92. Fingers crossed if I eradicate taking the trades in the chop I should be alright.
  • #44
  • Jul 17, 2020 10:33am Jul 17, 2020 10:33am
My trading rules help me avoid choppiness... But there's no way to just completely and magically avoid it all together. It's just part of the game.

I'm a day trader, when price is above the daily open I'm looking for longs and when price is below the daily open I'm looking for shorts. That's how I can sometimes avoid consolidation and trade the trend.
  • #45
  • May 6, 2022 12:00am May 6, 2022 12:00am
3 ema used to be the standard, when flat like pancakes stay out, when the fast crosses the two slower ones and they rise or fall and enter the second pull back.

Low volume usually results in chop and ranging market, also, if you have a pace of tape indicater that shows the flow of ticks per time period, ( ticks per second) you will notice there will be flurrys of orders when big money is getting out of their positions, following will be a range until they get back in.

trading during the popular times such as on equities, emini futures and the like, from open till about 11:30 am,, then the most likely time for rangey follows until about 2 30 pm or so, where you might get a move sometime before closing... But alot of the big money likes to have martini's and lunch..
  • #46
  • Last Post: May 6, 2022 4:33am May 6, 2022 4:33am
The best indicator by fa is the TDI. If you learn to interpret its indicator, it gives you very precise singnals, both short ang long term.
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