How can you tell if it will be a trending or choppy day?

January 28th, 2012, 05:44 PM

Im in the process of developing a trading plan based on ADX(14), ZerroLag, 34/55 EMA, and SuperTrend indicators.
It is a trend following strategy trying to use the ADX to keep me out of chop. Trading off the 144 tick bar charts and looking at 5/15/30 min charts to define the trend direction.

Longs = zerro lag> 34EMA>55EMA and all are blue. ADX crosses above 20 going green within 10 bars of a supertrend switch in color to green.

Shorts are reversed with the exception of the ADX.

While looking back at the charts this strategy does do pretty well at keeping me out of the chop but probably not well enough. I would like to be able to gauge if there will be chops or waves.

January 28th, 2012, 06:39 PM

Eiji

Im in the process of developing a trading plan based on ADX(14), ZerroLag, 34/55 EMA, and SuperTrend indicators.
It is a trend following strategy trying to use the ADX to keep me out of chop. Trading off the 144 tick bar charts and looking at 5/15/30 min charts to define the trend direction.

Longs = zerro lag> 34EMA>55EMA and all are blue. ADX crosses above 20 going green within 10 bars of a supertrend switch in color to green.

Shorts are reversed with the exception of the ADX.

While looking back at the charts this strategy does do pretty well at keeping me out of the chop but probably not well enough. I would like to be able to gauge if there will be chops or waves.

Undoubtedly one of the most ludicrous, recurring themes on this forum. It bears testament to the obsessive preoccupation with useless indicators and indicators in general. What's next, an indicator to tell you when your ass itches? Try using common sense and your knowledge of price patterns, intraday seasonality, intermarket correlations, etc. instead of attempting to rely on some textbook cliche of an indicator or some other contrivance. Study the market(s) you are trading and learn it's nuances and tendencies and you'll know in advance when it's the best time to trade.

January 28th, 2012, 07:42 PM

Eiji

Im in the process of developing a trading plan based on ADX(14), ZerroLag, 34/55 EMA, and SuperTrend indicators.
It is a trend following strategy trying to use the ADX to keep me out of chop. Trading off the 144 tick bar charts and looking at 5/15/30 min charts to define the trend direction.

Longs = zerro lag> 34EMA>55EMA and all are blue. ADX crosses above 20 going green within 10 bars of a supertrend switch in color to green.

Shorts are reversed with the exception of the ADX.

While looking back at the charts this strategy does do pretty well at keeping me out of the chop but probably not well enough. I would like to be able to gauge if there will be chops or waves.

I like to look at a volume profile where you can see the hvn and lvn.

when entering a high volume node, it's very likely price will spend some time in this area. I personally don't like the word "chop".

a low volume node is usually an area where price got rejected. either turned around or went right through.

January 28th, 2012, 07:48 PM

tigertrader

Undoubtedly one of the most ludicrous, recurring themes on this forum. It bears testament to the obsessive preoccupation with useless indicators and indicators in general. What's next, an indicator to tell you when your ass itches?

I think you can download it from the download section. The problem is sometimes the indicator didnt produce any signal but since your ass itches you click buy/sell

January 28th, 2012, 07:54 PM

What about if this soul is looking for a few clues he could use to develop an automated strategy? Ever seen an auto strategy that does not use indicator(s)? Maybe you should define what is a useless indicator as i see many in your own thread.

tigertrader

Undoubtedly one of the most ludicrous, recurring themes on this forum. It bears testament to the obsessive preoccupation with useless indicators and indicators in general. What's next, an indicator to tell you when your ass itches? Try using common sense and your knowledge of price patterns, intraday seasonality, intermarket correlations, etc. instead of attempting to rely on some textbook cliche of an indicator or some other contrivance. Study the market(s) you are trading and learn it's nuances and tendencies and you'll know in advance when it's the best time to trade.

January 28th, 2012, 08:36 PM

Silvester17

I like to look at a volume profile where you can see the hvn and lvn.

when entering a high volume node, it's very likely price will spend some time in this area. I personally don't like the word "chop".

a low volume node is usually an area where price got rejected. either turned around or went right through.

Can u link me to the MP indicator ur using, I just added Gomi but his has a different look from urs or am I mistaken? I try to search on nexusfi.com (formerly BMT) I go into advance into platforms/indicators but I rarely find what Im looking for normal threads is no problem.
Thanks again
R

January 28th, 2012, 08:43 PM

tigertrader

Undoubtedly one of the most ludicrous, recurring themes on this forum. It bears testament to the obsessive preoccupation with useless indicators and indicators in general. What's next, an indicator to tell you when your ass itches? Try using common sense and your knowledge of price patterns, intraday seasonality, intermarket correlations, etc. instead of attempting to rely on some textbook cliche of an indicator or some other contrivance. Study the market(s) you are trading and learn it's nuances and tendencies and you'll know in advance when it's the best time to trade.

But even if indicators are useless, it is more fun trading with some pretty colors, which will explain price action with hindsight and embellish your chart. Does n't this look convincing, and would not you have told you that price would have to hit these S/R lines prior to the start of the trading day?

There is a nice thread on random lines, which explains how a few horizontal lines may influence our brain.

January 28th, 2012, 08:58 PM

Rad4633

Can u link me to the MP indicator ur using, I just added Gomi but his has a different look from urs or am I mistaken? I try to search on nexusfi.com (formerly BMT) I go into advance into platforms/indicators but I rarely find what Im looking for normal threads is no problem.
Thanks again
R

sure no problem. here's the link:

GomMP Market Profile indicator

New beta version : 3.3

Added the possibilty to show the continuous evolution pf POC,VA and VWAP

This is controlled with 2 new settings :
*06 show continuous POC/VA/VWAP
*07 continuous lines thickness.

For performance reasons I had to code my own …

I can't post the indicator here because of non-elite thread.

may I suggest to read the whole thread, because there're so many different ways you can use this indicator.

January 28th, 2012, 08:59 PM

tigertrader

Undoubtedly one of the most ludicrous, recurring themes on this forum. It bears testament to the obsessive preoccupation with useless indicators and indicators in general. What's next, an indicator to tell you when your ass itches? Try using common sense and your knowledge of price patterns, intraday seasonality, intermarket correlations, etc. instead of attempting to rely on some textbook cliche of an indicator or some other contrivance. Study the market(s) you are trading and learn it's nuances and tendencies and you'll know in advance when it's the best time to trade.

So you are saying that a strategy based on indicators is doomed to failure?

How can you tell if it will be a trending or choppy day?

Discussion in Emini and Emicro Index

How can you tell if it will be a trending or choppy day?