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Good Chop Indicator

  • #1
  • First Post: Sep 10, 2013 11:32am Sep 10, 2013 11:32am
Hey there,
Just wondering if anyone has found a decent indicator that will pick up on choppiness in the market? Trying to avoid the choppy markets and want to include something in a system I am writing that will help detect it.

Thanks
  • #2
  • Sep 10, 2013 10:04pm Sep 10, 2013 10:04pm
You would like an indicator that predicts choppiness before it actually happens or an indicator that indicates that choppiness is underway?
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #3
  • Sep 11, 2013 1:03am Sep 11, 2013 1:03am
Quoting skenobi
You would like an indicator that predicts choppiness before it actually happens or an indicator that indicates that choppiness is underway?
Yeah ... me too I would like to have such an indicator ... please please please help me to find it ... thank you very much in advance
MT4/MT5 EAs/Indicators/Alerts coder
  • #4
  • Sep 11, 2013 8:48am Sep 11, 2013 8:48am
Quoting skenobi
You would like an indicator that predicts choppiness before it actually happens or an indicator that indicates that choppiness is underway?
Wow!!! If you could predict choppiness, I would LOVE to have that! ;-) But I was more thinking of choppiness underway. Of course if you have the prediction tool, I would love to see that!!!
  • #5
  • Sep 11, 2013 6:20pm Sep 11, 2013 6:20pm
Quoting powercouple
{quote} Wow!!! If you could predict choppiness, I would LOVE to have that! ;-) But I was more thinking of choppiness underway. Of course if you have the prediction tool, I would love to see that!!!
For choppiness underway, you don't trust your eyes? For me, choppiness is a matter of personal opinion. An indicator's reading of "choppiness" is ultimately based on the past, and choppiness always starts ahead of any indicator, so you're gonna be disadvantaged no matter what.

You're much better off in, for example, slapping on a single 60-bar MA on any TF, drawing significant horizontal SR lines and then see how price behaves around the MA and those levels.

Otherwise, nothing really beats the eyes in determining if choppiness is underway.

This is one of those times I'm really trying not to be flippant. Good luck in your search, nevertheless.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #6
  • Sep 11, 2013 7:20pm Sep 11, 2013 7:20pm
Quoting skenobi
An indicator's reading of "choppiness" is ultimately based on the past, and choppiness always starts ahead of any indicator, so you're gonna be disadvantaged no matter what.
Exactly.
MT4/MT5 EAs/Indicators/Alerts coder
  • #7
  • Sep 12, 2013 7:46am Sep 12, 2013 7:46am
I'm also interested in this kind of indicator (estimator). More precisely in the algorithm used as I'm not using MT4. I don't care the lag, the lesser the better of course, but even a dozen of bars are OK.
BTW can you tell me how your naked eyes can spot a choppy market faster than the bars appear?? My own eyes are limited to the bars the chart has already displayed, my eyes lag
No greed. No fear. Just maths.
  • #8
  • Sep 12, 2013 1:32pm Sep 12, 2013 1:32pm
Quoting skenobi
{quote} You're much better off in, for example, slapping on a single 60-bar MA on any TF, drawing significant horizontal SR lines and then see how price behaves around the MA and those levels.
For M5 and M15, I use the combination of 35 SMA and 50 EMA.
When the two are flat and entangled I consider it "choppy".
When they are parallell and rising (or falling) there is a trend.....
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  • #9
  • Last Post: May 6, 2022 12:04am May 6, 2022 12:04am
low volume is usually a sign that the market will be range bound and chop, also a pace of tape indicator that shows volume of ticks per time period, orders per second,
will show.. both when low indicates not many traders there to move a market.
time of day, on equities like emini futures or stocks, the open until about 11 30 am or so, is most likley a time of volume and where you will get a move, then thru lunch it is more likely it will be choppy, then about 3 pm, is when they come back from lunch for another trade before the bell.
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