Posted by jimbodad on 13th of Apr 2011 at 02:46 pm
I generally trade stock index, currencies, and commodity
futures...I have good risk management and methodology for trading -
but I find myself overtrading, less patient, and basically less
profitable in choppy markets.
Is there anything you guys use that helps you to recognize
trending days versus choppy days? (using volume, ADX, certain
fib breaks, anything?) Thanks
Posted by lessarda on 13th of Apr 2011 at 04:21 pm
9. Trend or Not a Trend
Use ADX. The Average Directional Movement Index (ADX) line helps
determine whether a market is in a trending or a trading phase. It
measures the degree of trend or direction in the market. A rising
ADX line suggests the presence of a strong trend. A falling ADX
line suggests the presence of a trading market and the absence of a
trend. A rising ADX line favors moving averages; a falling ADX
favors oscillators. By plotting the direction of the ADX line, the
trader is able to determine which trading style and which set of
indicators are most suitable for the current market
environment.
Price is king... If you trading futures... trade at
extremes and stay out of the middle. Usually the first
1 or so and the last hour or so are the best times...
the rest is usually chop... always trade on volume!!
or....if a certain "SOMEONE" is speaking... LOL
You will also usually notice a reversal mid morning when the
pond closes.
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Market Trend vs. Chop
Posted by jimbodad on 13th of Apr 2011 at 02:46 pm
I generally trade stock index, currencies, and commodity futures...I have good risk management and methodology for trading - but I find myself overtrading, less patient, and basically less profitable in choppy markets.
Is there anything you guys use that helps you to recognize trending days versus choppy days? (using volume, ADX, certain fib breaks, anything?) Thanks
Murphy's Law #9 on trending or trading:
Posted by lessarda on 13th of Apr 2011 at 04:21 pm
9. Trend or Not a Trend
Use ADX. The Average Directional Movement Index (ADX) line helps determine whether a market is in a trending or a trading phase. It measures the degree of trend or direction in the market. A rising ADX line suggests the presence of a strong trend. A falling ADX line suggests the presence of a trading market and the absence of a trend. A rising ADX line favors moving averages; a falling ADX favors oscillators. By plotting the direction of the ADX line, the trader is able to determine which trading style and which set of indicators are most suitable for the current market environment.
all that stuff is a bunch of noice
Posted by zach06 on 13th of Apr 2011 at 02:52 pm
Price is king... If you trading futures... trade at extremes and stay out of the middle. Usually the first 1 or so and the last hour or so are the best times... the rest is usually chop... always trade on volume!! or....if a certain "SOMEONE" is speaking... LOL You will also usually notice a reversal mid morning when the pond closes.