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Signs markets are heading into a choppy period

  • Post #1
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  • First Post: Mar 11, 2007 3:29pm Mar 11, 2007 3:29pm
  •  vyder
  • | Joined Sep 2006 | Status: Pip Adept | 340 Posts
I was wondering if people can share their insight as to what signs/signals should one be aware of that might indicate that the market is heading into a choppy period. I don't like trading during sideways/choppy movement and thus would like a way to help me see when a choppy period is about to be underway.

thanks.
  • Post #2
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  • Mar 11, 2007 3:48pm Mar 11, 2007 3:48pm
  •  hilmy83
  • Joined Jun 2006 | Status: Do NOT tilt | 5,708 Posts
i use srdc I to filter out ranging markets

ex
if the price closes above its previous high, then reverses and hit my s/l I only will short or go long again once it closes beyond the high or low of the failed entry candle

that's not 100% filter, but if i can reduce my losses due to these ranging markets, that's the edge i have as a trend trader, plus adding positions on winning trades!
Working towards CME membership
 
 
  • Post #3
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  • Last Post: Mar 12, 2007 12:42am Mar 12, 2007 12:42am
  •  vyder
  • | Joined Sep 2006 | Status: Pip Adept | 340 Posts
thanks hilmy...i will look into srdc 1.
 
 
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