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Yes I know how to avoid chop when I trend trade. That's not what this thread is about.

"I've never seen such a price action." Yeah, well, I've never seen a pure trend but how to trade it is obvious. It is my contention that all price action can be considered as mixtures of trend and chop, and there are mixtures that are tradable and other mixtures that are not tradable. Just as...

One solution, which I believe is what RedNeck was getting at, is to turn the chop into range by going to a smaller timeframe. This will reveal intermediate prices between the limits and the price series can then be range-traded (aka trend-traded). But what if for whatever reason a smaller...

What does that mean?

This subject is getting overcomplicated so let's simplify it. Let's assume we have a security that is only moving in pure chop, i.e., there is absolutely no trend. The chop is flat; it isn't upsloping or downsloping because that would involve trend. There is no range because range is a series...

I'm going to assume you meant "not waiting could prove costly.". Yes, and so could getting caught in an avoidable reversal. There are always trade-offs in trading. We each have to decide which ones we can live with.

I get out when chop appears because (1) the next trend may be a reversal and I don't get caught with a large loss because I didn't act, (2) no telling how long the chop will last, which means you're not making money. If I get out, I can put that money to use elsewhere where there is a trend...

I don't try to tell the market what to do, I let it tell me what it is doing and respond appropriately. In that sense, there is no premature exit. When the chop rises, the trend weakens to the point where it can no longer justify the trade. That's when to exit. I can always get back in when a...

I think bracket trading is a form of trend trading where you anticipate a breakout. No surprise that fails when chop is rampant. I'm thinking there's something that works anticipating a reversal. I was thinking about scalping. It really doesn't make sense to scalp when the trend is strong...

This thread is a reboot of a previous thread ( http://www.elitetrader.com/et/index.php?threads/chop.292695/ ) which, because of a troll, quickly went toxic. I apologize for letting myself get dragged into a flame war and will not do so in this thread. The goal of this thread is to...

Two things: My request was for generic methods, not generic information of all types, because I didn't want anyone assuming I was asking for their specific strategy. People shouldn't be asked for their detailed trading plans. All I was asking, with the trend example given explicicitly, was...

Your exact words: " Mark gave a fine definition of chop v trend v range, but let's whiz past that and argue." To which I respond saying, hey, I looked and saw no such definitions. Where are they? To which you respond Look at the links. Aside from the fact that IF there is a definition of...

Because words matter. Details matter. I look and didn't find those "fine definitions" you referenced, yet you're irked that people seemingly passed right over them. Why? There's no there, there. Unless you can give a direct quote or a direct link (not a link to some 12-page thread that *may*...

No, actually he didn't. He talked about the terms being different but there was precious little on specifics.

http://www.investopedia.com/terms/c/choppymarket.asp When you hear people talking about "sideways trend", they are talking about chop.

What proven strategy? You saying scalping is a proven strategy? Thatsounds pretty stupid, based on the previous exchanges. Me, I don't know scalping, but I do know stupid is investing in something that has two strikes against it before I even get started.

Excellent post. You're right, chop trading no matter how it is done is going to generate a lot more commissions than trend trading. That alone is reason to avoid it. So I'll be sticking to trading trends. Thanks much for your inputs.

I answered Autodidact's question before I saw your response here so the answer to how I see chop is there. If as you indicate scalping can be profitable in all types of markets then maybe that's the answer to how to trade chop. Frankly it sounds too good to be true. If scalping is that...

I answered Autodidact's question before I saw your response here so the answer to how I see chop is there. If as you indicate scalping can be profitable in all types of markets then maybe that's the answer to how to trade chop. Frankly it sounds too good to be true. If scalping is that...

I always thought range was a mix between chop and trend. Or maybe range is chop in a higher timeframe than the one you're recording data in. What do you think?