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

  • #21
  • Mar 25, 2013 4:36am Mar 25, 2013 4:36am
  •  winn
  • | Joined Aug 2009 | Status: photography-Fotografie-фотография | 63 Posts
Quoting forexalien
Ranging equals Chop. Wait for a true breakout or if you have a trending indicator, it will tell you that you are leaving the chop. As the others have said, " Use Your Eyes" One last clue...I trade with 5 time frames in front of me for each pair. 1m 5m 15m 1H 4H, the direction of the 1m drives the 5m, the 5m drives the 15m and so on......watch an 8,3,3 stochastic and place a 50% line on it and watch price closely during the busy times NY London etc. Take notice the direction price is traveling, then place a 20% and 80% and watch price as it crosses...

do you still trade 1m 5m 15m 1H 4H, time frames ?
gold
  • #22
  • Jul 11, 2014 2:56am Jul 11, 2014 2:56am
Quoting ZInvestor
There are all kinds of methods and systems of entries and exits but every one that I have ever seen or heard of failed in times of chop. Does anyone have a good indicator to prevent taking an entry signal when price is choppy? I am especially interested in something that will indicate chop when using Renko charts.
1. RENKO bars: very good to avoid choppy markets
2. ADX : If below 20, don't trade, you can check with Higher TM
Attached File(s)
File Type: tpl nihilist ultra trend.tpl   6 KB | 863 downloads
Attached File(s)
File Type: ex4 Nihilist_Trend_Filter_1.ex4   10 KB | 983 downloads
Attached File(s)
File Type: ex4 Nihilist_Trend_Filter_2.ex4   10 KB | 978 downloads
Attached File(s)
File Type: ex4 Nihilist_Ultra_ADX.ex4   9 KB | 981 downloads
Attached File(s)
File Type: ex4 Nihilist_Ultra_ADX_Dash_ mtf.ex4   22 KB | 937 downloads
  • #23
  • Jul 11, 2014 3:29am Jul 11, 2014 3:29am
Quoting ZInvestor
What is your best chop indicator to keep you out of choppy markets?
MK1_Human_Eyeball_v1.0.ex4
  • #24
  • Jul 11, 2014 3:32am Jul 11, 2014 3:32am
Quoting GDR3k
{quote} MK1_Human_Eyeball_v1.0.ex4
lol..
Memories caught in time but never forgotten
  • #25
  • Sep 21, 2014 6:58am Sep 21, 2014 6:58am
Quoting forexat8am
{quote} 1. RENKO bars: very good to avoid choppy markets 2. ADX : If below 20, don't trade, you can check with Higher TM {file}{file}{file}{file}{file}
YesI have found the "choppiness indicator" but not for Meta4. I will attach the formula which seems not to be too complicated to program for Meta4.
I would appreciate the help for this very much . Thanks
Attached File(s)
File Type: doc Choppiness Ind.doc   24 KB | 1,066 downloads
  • #26
  • Oct 6, 2015 8:01am Oct 6, 2015 8:01am
Hey,

I had this problem and found that a custom atr ratio indicator can help determine when a market is choppy.

I use it for very short time frames but seems to help for longer ones also. I can send over if you like?

Jay
  • #27
  • Oct 6, 2015 3:36pm Oct 6, 2015 3:36pm
Quoting ZInvestor
Does anyone have a good indicator to prevent taking an entry signal when price is choppy?

Yes: the mutual proximity of multiple horizontal lines/zones of recent support and resistance.

Or, if using the Ichimoku Kinko Hyo indicator-set, the relative thickness of the "kumo" (cloud-formation), which illustrates much the same thing, in a sense.
  • #28
  • Oct 6, 2015 9:35pm Oct 6, 2015 9:35pm
If you wanna avoid chop, just look at the markets like this and trade uncorrelated currencies against each other.
Attached Image (click to enlarge)
Click to Enlarge Name: xvsdollarl4p67.png Size: 12 KB
  • #29
  • Oct 6, 2015 11:45pm Oct 6, 2015 11:45pm
Quoting forexat8am
{quote} 1. RENKO bars: very good to avoid choppy markets 2. ADX : If below 20, don't trade, you can check with Higher TM {file}{file}{file}{file}{file}
Renko chart is one possible solution because it is purely based on price movement.

Maybe we can also go to smaller time frame and see what's going on. If for example, the price is forming consolidation pattern like channel then there is a chance that something like that will also happen on the bigger time frame (but not always).

Some time ago I saw NFP scheduled at holiday and the market just went pretty choppy and boom when NFP data hit the market.
Different/opposing ideas will make us learn and understand many things.
  • #30
  • Oct 7, 2015 3:21am Oct 7, 2015 3:21am
Quoting UnnamedPlayr
If you wanna avoid chop, just look at the markets like this and trade uncorrelated currencies against each other.

Attached Image


You can also do this with asset classes away from FX. The charts above are from commodities. Noticed how the lower chart has reduced volatility even though they are the same product class over the same time frame.
  • #31
  • Oct 7, 2015 4:18am Oct 7, 2015 4:18am
Why stay out of choppy market? For me, choppy markets presents more opportunities.
  • #32
  • Oct 7, 2015 4:33am Oct 7, 2015 4:33am
Quoting ZInvestor
There are all kinds of methods and systems of entries and exits but every one that I have ever seen or heard of failed in times of chop. Does anyone have a good indicator to prevent taking an entry signal when price is choppy? I am especially interested in something that will indicate chop when using Renko charts.
BRAIN works the best
  • #33
  • Oct 7, 2015 8:04am Oct 7, 2015 8:04am
Quoting redbaron1981
{quote} {image} You can also do this with asset classes away from FX.
Exactly.
  • #34
  • Oct 8, 2015 6:23pm Oct 8, 2015 6:23pm
Quoting UnnamedPlayr
If you wanna avoid chop, just look at the markets like this and trade uncorrelated currencies against each other. {image}

Nugget.

What would you trade? The cross currencies of the pairs you showed?

How would you define your entry? Based on what? Momentum, Imbalance? Support & Resistance breakouts/retests?

Can you please show a good example?

Thanks.
  • #35
  • Oct 9, 2015 12:50am Oct 9, 2015 12:50am
there are hell a lot of indies can do that.
but the thing is whatever indie you use, it can never prevent you form choppy market in the first place.
because both trending and choppy market take time to develop, you can not identify it in the beginning.
patience is a virtue
  • #36
  • Oct 9, 2015 7:22pm Oct 9, 2015 7:22pm
Quoting FXTriumph
{quote} Nugget. What would you trade? The cross currencies of the pairs you showed? How would you define your entry? Based on what? Momentum, Imbalance? Support & Resistance breakouts/retests? Can you please show a good example? Thanks.
I don't wanna go into detail cause i do also basket price/value (hedge) trades in various asset classes.

But as simple momentum trades i trade during the London & US session very often AUD/JPY and CAD/JPY.
  • #37
  • Dec 19, 2015 2:58am Dec 19, 2015 2:58am
Quoting ZInvestor
There are all kinds of methods and systems of entries and exits but every one that I have ever seen or heard of failed in times of chop. Does anyone have a good indicator to prevent taking an entry signal when price is choppy?
You may want to read more on ADX. Simple explanation here at babypips. To delve in deeper, read stockcharts.

Here i attached some indicators that might helping.

Attached File(s)
File Type: ex4 NPCP_HTChopFree.ex4   13 KB | 1,365 downloads

This indicator come without any instructions, but the best guess is the dots on the 0 level means it is ranging market.

Another indicator is:
Attached File(s)
File Type: mq4 Wilder's DMI 3_1.mq4   9 KB | 1,324 downloads

This is non lag ADX by mladen. You can choose to use original formula by Wilder or factory setting by mt4.

Let's see them in action.
Attached Image (click to enlarge)
Click to Enlarge Name: ! compare npcp & wilder's adx.png Size: 39 KB


You also can use Standard Deviation (provided as standard indicator MT4). But, i like ADX much better.

Hope you get some idea with them.
  • #38
  • Dec 19, 2015 3:01am Dec 19, 2015 3:01am
Quote
What is your best chop indicator to keep you out of choppy markets?
Its really not a matter of the type of indicator but rather the amount of lag you set for it.
  • #39
  • Dec 19, 2015 9:15am Dec 19, 2015 9:15am
Quote
First let me say that there are no indicators, candlestick patterns, moon phases, solar eclipses or even eyeballs that can predict that a choppy market is coming. Some can show you that you are in a choppy market but not that one is coming.

This is not very true.

Trends mean there is a trade facilitation between buyers and sellers: when trades are not facilitated anymore we can see price struggling to move on the direction of the dominant trend. This is clue the market may start to balance soon. Also when price re-integrates its value area (market profile's concept) it gives us a warning that the market is becoming balanced.
  • #40
  • Apr 6, 2020 2:20pm Apr 6, 2020 2:20pm
Hi,
I have been backtesting npcp_htchopfree and enjoying this indicator.
Only problem is that it doesn´t plot the value of the current bar until it closes.
Thepeople from the software company said it is like this by design.
Can any coder modify it, so it shows the signal on the actual candle ?
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