How do forumites trade in choppy waters | Forex Factory

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How do forumites trade in choppy waters

  • #1
  • First Post: Nov 20, 2005 5:13pm Nov 20, 2005 5:13pm
Hi,
after the last two weeks of fun and games with the spot gbp/usd. i am trying to find strategies to trade with, if i can trade, when the market is "choppy"

how do fellow forumites trade (intraday or daily timeframe) in choppy waters or when a spot currency is ranging?


thanks
anthony
another INTP
  • #2
  • Nov 20, 2005 5:41pm Nov 20, 2005 5:41pm
play reversal strategies!

something like an overbought/oversold system. for instance, you could reverse off of the pivot points, and take profit when it reaches the pivot on the other side. also check out james16's pin bars.

if you are good at predicting whether or not the market will be choppy you can make good profits by switching from a breakout to a reversal system as market conditions change
Relax and be happy.
  • #3
  • Nov 20, 2005 6:26pm Nov 20, 2005 6:26pm
choppy mkt = take a holiday

Rgds..
  • #4
  • Nov 20, 2005 7:53pm Nov 20, 2005 7:53pm
I think a more important question is when do you know that a market is choppy? Do you look back and say last week was choppy, I should have been trading my choppy system or on holiday?

Is this week going to be a choppy market?

I'll let you know on Friday.

Simon
  • #5
  • Nov 20, 2005 8:10pm Nov 20, 2005 8:10pm
Quoting DrRock
I think a more important question is when do you know that a market is choppy? Do you look back and say last week was choppy, I should have been trading my choppy system or on holiday?

Is this week going to be a choppy market?

I'll let you know on Friday.

Simon
IMO, if it's a choppy market with low volume, it's very hard to make money trading on a short term basis. A lot of the chop is created by dealers and MM's just taking out the stops of daytraders, scalpers atempting to make a few pips. If you're going to try and trade chop with tight stops your win percent is going to be much lower.

JohnFX
  • #6
  • Nov 20, 2005 8:12pm Nov 20, 2005 8:12pm
This caught my attention. Being an ex futures / ES guy (and new to this forum!), and a major over trader, i have determined that only if there is a clear reversal (and that in the direction of a higher timeframe will i trade. Honestly, it is tough, but i am learning discipline. Look forward to posting and getting to know you guys and gals more...
  • #7
  • Nov 20, 2005 8:13pm Nov 20, 2005 8:13pm
Quoting JohnFX
IMO, if it's a choppy market with low volume, it's very hard to make money trading on a short term basis. A lot of the chop is created by dealers and MM's just taking out the stops of daytraders, scalpers atempting to make a few pips. If you're going to try and trade chop with tight stops your win percent is going to be much lower.

JohnFX
Drrock sorry I accidently replied as a quote to your post. I only meant to post a general opinion to this thread.

JohnFX
  • #8
  • Nov 20, 2005 8:17pm Nov 20, 2005 8:17pm
Quoting james275
This caught my attention. Being an ex futures / ES guy (and new to this forum!), and a major over trader, i have determined that only if there is a clear reversal (and that in the direction of a higher timeframe will i trade. Honestly, it is tough, but i am learning discipline. Look forward to posting and getting to know you guys and gals more...
Yeah James, I used to also daytrade stock index futures. I learned that it usually wasn't worth it trying to trade between 12:00 - 2:00 PM (ET) when volume dropped way down, because of lunch time. The locals are like sharks just waiting to chomp on ya.

JohnFX
  • #9
  • Edited 8:28pm Nov 20, 2005 8:20pm | Edited 8:28pm
Quoting anthonybaker
Hi,
after the last two weeks of fun and games with the spot gbp/usd. i am trying to find strategies to trade with, if i can trade, when the market is "choppy"

how do fellow forumites trade (intraday or daily timeframe) in choppy waters or when a spot currency is ranging?


thanks
anthony
Play the Round Number ping pong game
Watch price action as it approaches the 100 & 50 RN's. 80 & 20 are valid too, but I mainly concentrate on the primes & half primes. Price tends to react well off these levels, especially if a major fib or S&R. Look for 123's, DB/DT's, 2B setups on the faster time frames. Target last swing high-low -+spread. This will give you an idea if the RR is worth it.
  • #10
  • Nov 21, 2005 12:51am Nov 21, 2005 12:51am
Quoting JohnFX
IMO, if it's a choppy market with low volume,
JohnFX
How do you know that the FX market is low volume or high volume?

Simon
  • #11
  • Nov 21, 2005 5:54am Nov 21, 2005 5:54am
Choppy ranges? easy one for me. With so many pairs and crosses, you can always find one or two that are trending. I personally stay away from choppy markets, no need to play that kind of lottery.
  • #12
  • Nov 21, 2005 4:40pm Nov 21, 2005 4:40pm
Sure you do. Question is: why would you if you can always find one or two trending pairs? I dont think it's worth incurring in the extra risk.

The way I see it is: if I dont like what I see, I dont trade. Quoting Jim: "a trader is not to be out there with a machine gun. A trader's job is that of a sniper"
  • #13
  • Nov 22, 2005 8:24pm Nov 22, 2005 8:24pm
thanks all
another INTP
  • #14
  • Nov 23, 2005 2:45am Nov 23, 2005 2:45am
I love choppy price action because soon there will be good moves. Market is choppy when bollinger bands is trading inside Ketler chanels. When bollingers come out it is end of rangebound and signal to enter.


tnx
kiss the trend
  • #15
  • Aug 30, 2014 1:31pm Aug 30, 2014 1:31pm
choppy waters means n trend with no trend what the heck are you doing in the market.its too dangerous to trade a 'trendless' market.
  • #16
  • Last Post: Aug 31, 2014 2:31pm Aug 31, 2014 2:31pm
stochastic works very good in ranges and shop
Bulls are stupid Animals!especially when Im short!
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