What is Best Indicator to Filter for a Choppy Market

If you don't know where to start, start here! Don't be afraid to ask questions.

Moderator: moderators

CarsonS9
rank: <50 posts
rank: <50 posts
Posts: 6
Joined: Fri Jan 29, 2010 3:13 am
Reputation: 0
Gender: Male

What is Best Indicator to Filter for a Choppy Market

Postby CarsonS9 » Fri Jan 29, 2010 3:17 am

So I been a long time follower of TRO's and checking out forums and posts but I have yet to come across an indicator that filters out a choppy market. After a few bad trades I can tell when a market is stuck in a channel but would be great to know the first bad trade if it's going to be like that awhile and when it's come out of it would be great too.

Anyone got a favorite indicator or know of one that knows when the market is channeling or choppy?

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
noone22
rank: 150+ posts
rank: 150+ posts
Posts: 390
Joined: Tue Aug 05, 2008 4:50 am
Reputation: 0
Gender: None specified

Postby noone22 » Fri Jan 29, 2010 6:52 am

If price is not going any further, than
5% of daily ATR(7) from EMA(6) -
then market is choppy.

TRO has some Volatility Meter mq4-indicator
on the matter, but I haven't tried it yet.

User avatar
bredin
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Mon Feb 16, 2009 10:41 pm
Reputation: 0
Gender: None specified
Contact:

Postby bredin » Fri Jan 29, 2010 7:31 am

Ummm, my eyes?
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!

CarsonS9
rank: <50 posts
rank: <50 posts
Posts: 6
Joined: Fri Jan 29, 2010 3:13 am
Reputation: 0
Gender: Male

Postby CarsonS9 » Fri Jan 29, 2010 1:35 pm

Haven't seen the Volatility Meter indicator and couldn't find it on a quick search. If someone has it (and it's not a donational indicator) can they post it?

As for what I currently use....the best filter I have is probably the Damiani_volatmeter indicator. That one filters out a little too much though. Hence my quest for the best one.

Fxtraveller
rank: 150+ posts
rank: 150+ posts
Posts: 395
Joined: Thu Nov 27, 2008 2:56 pm
Reputation: 0
Location: UK
Gender: Male

Postby Fxtraveller » Fri Jan 29, 2010 2:14 pm

Price action and own eyes. requiring an choppiness indicator is similar to needing a calculator for 'whats 2+2 ?'.
no offense.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

CarsonS9
rank: <50 posts
rank: <50 posts
Posts: 6
Joined: Fri Jan 29, 2010 3:13 am
Reputation: 0
Gender: Male

Postby CarsonS9 » Fri Jan 29, 2010 2:28 pm

None taken. I can tell after a bit when things are getting choppy...pretty easy stuff. What I want is something that knows right off the bat if we are heading into choppy waters and when we are exiting the choppy waters. Not sure if there's something out there that can do that but doesn't hurt to ask and look for it.

CarsonS9
rank: <50 posts
rank: <50 posts
Posts: 6
Joined: Fri Jan 29, 2010 3:13 am
Reputation: 0
Gender: Male

Postby CarsonS9 » Fri Jan 29, 2010 2:32 pm

ATR is pretty good too at filtering out some of the slower, choppy markets. Anyway just throwing some stuff out there.

johny
rank: 50+ posts
rank: 50+ posts
Posts: 55
Joined: Thu Nov 19, 2009 11:53 am
Reputation: 0
Gender: Male

Postby johny » Fri Jan 29, 2010 4:11 pm

Hi Carson,

Many moons ago MO posted the following that may help in your quest to concentrate on the pair that moves!
(TRO wrote an indi to calculate it)

cheers,
Johny

------------------------
You can trade any pair that moves, we don't want to trade a pair that just sits there and does nothing.

What is a pair that moves? Check the daily average true range!
(up at the top: insert --> indicators ---> Oscillators ---> Average True Range: set average to 21.

(Do this when the market is closed unless you write an indi or are bored)

This is my rule: If the ATR 21 is not at least 150 right now then I am wasting my time with this pair! (Based on DAILY RANGE)

For day trading I would set up a list of pairs I would trade first:

Get a pen and paper and put each pair (with a major) in one of the 3 groups.

Multiply their tick value by their 21 ATR and create an ABC list:

A: Highest Value
B: High Value
C: No set ups in the other pairs.

A = Top 3 pairs
B = Next 2 best pairs
C = All the rest.
D = Less than 150 pip range (DON'T TRADE IT!)
-------------------------------

User avatar
noone22
rank: 150+ posts
rank: 150+ posts
Posts: 390
Joined: Tue Aug 05, 2008 4:50 am
Reputation: 0
Gender: None specified

Postby noone22 » Sat Jan 30, 2010 1:00 am

Less 150 pips range rule will kill nearly all pairs,
apart from GBPUSD and GBPJPY.

Does it means, that one cannot trade AUDUSD or EURUSD?
Of course not.

Conclusion - this rule is not comprehensive enough,
even though it's origination from MO himself.

User avatar
bredin
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Mon Feb 16, 2009 10:41 pm
Reputation: 0
Gender: None specified
Contact:

Postby bredin » Sat Jan 30, 2010 8:54 pm

noone22 wrote:Less 150 pips range rule will kill nearly all pairs,
apart from GBPUSD and GBPJPY.

Does it means, that one cannot trade AUDUSD or EURUSD?
Of course not.

Conclusion - this rule is not comprehensive enough,
even though it's origination from MO himself.


This is an indi I wrote from MOs rules



theres plenty of opportunity from this, in december last year the top moving pair was the EURNZD at one point its average was over 270, so theres a lot more movement than you think.
EURUSD was below 120 average a week or so ago, and is improving almost daily.
most of the USD pairs are quieter than usual at the moment, even GBPUSD fell below 150 earlier this month.

Cheers
G
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “beginners forum”