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What is Best Indicator to Filter for a Choppy Market

Posted: Fri Jan 29, 2010 3:17 am
by CarsonS9
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?

Posted: Fri Jan 29, 2010 6:52 am
by noone22
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.

Posted: Fri Jan 29, 2010 7:31 am
by bredin
Ummm, my eyes?

Posted: Fri Jan 29, 2010 1:35 pm
by CarsonS9
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.

Posted: Fri Jan 29, 2010 2:14 pm
by Fxtraveller
Price action and own eyes. requiring an choppiness indicator is similar to needing a calculator for 'whats 2+2 ?'.
no offense.

Posted: Fri Jan 29, 2010 2:28 pm
by CarsonS9
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.

Posted: Fri Jan 29, 2010 2:32 pm
by CarsonS9
ATR is pretty good too at filtering out some of the slower, choppy markets. Anyway just throwing some stuff out there.

Posted: Fri Jan 29, 2010 4:11 pm
by johny
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!)
-------------------------------

Posted: Sat Jan 30, 2010 1:00 am
by noone22
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.

Posted: Sat Jan 30, 2010 8:54 pm
by bredin
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