An indicator to avoid the chop and slop????

October 27th, 2013, 05:35 AM

DionysusToast

IMO - there really is no 'chop'.

Indeed. I simplify it into just one choice - do I need to go up or down a timeframe. After all a candle is itself nothing more than a visual summary of the wave pattern and price structure that happened inside it.

October 27th, 2013, 07:12 AM

DionysusToast : IMO - there really is no 'chop'.

Markets will make a move, consolidate (chop/accept/rotate) and then make another move.

i second this explanation. good one

October 27th, 2013, 07:55 AM

Silvester17

the vwap has about the same value on a 2 range or 60 min chart. also you don't need to guess what period to use. normally I try to avoid any trades between the upper and lower 1st standard deviation bands (for me that's also the value area). however, there's one exception. in strong trending markets if price pulls back to the vwap line, that might be a good opportunity for reentering the market.

For those who use the Ichimoku chart - there are well defined chop / or rotational zones to see.
The indicator (disucussed in other threads) is known as KUMO or cloud. Is price within this zone
the price may move many times from border to border before it leaves. Trading within - like
Silvester points out with VWAP 1 - is difficult - and trade starts should be avoided within.
Best settings to see those "to undecided zones" are the 30 minute chart - as well as the 1 day chart.
It needs some experience to make money even then... for all others - this zone means:
Stay at the sidelines!

GFIs1

October 27th, 2013, 11:34 PM

wait for price to surpass the high or low of the previous period

March 29th, 2023, 11:15 AM

Hi Mike,

Is there a way I can watch these as I do not have flash anymore.

Regards,
Mahir

Big Mike

"Chop" is usually created by users who are trying to trade a really small timeframe, because they want to reduce risk (limit losses). This of course is almost always the wrong approach (imo) and is caused due to inexperience.

There is no "chop". I have not thought about "chop" in years, ever since finally moving to bigger time frames. No, this does not mean increasing risk.

Watch this webinar:

NinjaTrader 7 to include Monte Carlo Simulator

According to Dierk Droth, the VP of Engineering for NinjaTrader, the upcoming NT7 beta will include a Monte Carlo simulator.

Monte Carlo sims are a way to produce random data to simulate different types of market scenarios and events, so that your strategy …

Read this thread:

Who makes more money. Scalpers or Point Traders

Ok dont want to over complicate this question, assume trader is profitable and manages Risk to Reward etc, we all know a scalper is usually 1to1 or 2to1, guys trading bigger time frames are 1to3 or 1to4. Only referring to day traders not holding for days, …

Between the two, you should be able to solve your chop problem -- even if you disagree with everything I've said and still trade really small charts.

Do yourself a favor and avoid going down the road of "filters" with indicators to try and "keep you out of chop". It's a suckers game. There is no chop, it's something you create by looking at the market in the wrong way.

Mike

May 4th, 2023, 06:27 PM

Big Mike

"Chop" is usually created by users who are trying to trade a really small timeframe, because they want to reduce risk (limit losses). This of course is almost always the wrong approach (imo) and is caused due to inexperience.

There is no "chop". I have not thought about "chop" in years, ever since finally moving to bigger time frames. No, this does not mean increasing risk.

Watch this webinar:

NinjaTrader 7 to include Monte Carlo Simulator

According to Dierk Droth, the VP of Engineering for NinjaTrader, the upcoming NT7 beta will include a Monte Carlo simulator.

Monte Carlo sims are a way to produce random data to simulate different types of market scenarios and events, so that your strategy …

Read this thread:

Who makes more money. Scalpers or Point Traders

Ok dont want to over complicate this question, assume trader is profitable and manages Risk to Reward etc, we all know a scalper is usually 1to1 or 2to1, guys trading bigger time frames are 1to3 or 1to4. Only referring to day traders not holding for days, …

Between the two, you should be able to solve your chop problem -- even if you disagree with everything I've said and still trade really small charts.

Do yourself a favor and avoid going down the road of "filters" with indicators to try and "keep you out of chop". It's a suckers game. There is no chop, it's something you create by looking at the market in the wrong way.

Mike

Mike, Thanks. I am curious what higher time frames have you experienced begin to have no impact or factor with perceived "chop" like you mentioned here?

May 4th, 2023, 07:59 PM

mahirali

Hi Mike,

Is there a way I can watch these as I do not have flash anymore.

Regards,
Mahir

Try the youtube channel.
(be sure to subscribe)

An indicator to avoid the chop and slop????

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An indicator to avoid the chop and slop????