Chop and flat days

[NihabaAshi]

Quote from blackchip:

What are you using for volatility analysis?

* If there are no WRB's...the market is flat and will continue as such until WRB's appear.

* If there are WRB's and they quickly retrace each other...the market is choppy and will continue as such until WRB's stop retracing each other.

WRB's is also known as Wide Range Bodies.

No indicators needed...it can be done visually.

Use ET search to find out more about WRB's (wide range bodies).

http://www.elitetrader.com/vb/search.php?s=

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

 

[Spectra]

Yes they sell this method for $500 or so I think.

Quote from RedDuke:

John Carter discusses it in his book. One of the ways to identify a chop is to put bollinger bands (20, 2) and keltner channel (1.5, 20) on any chart, and when both BB get inside keltner channel it is chop.

 

[RedDuke]

Quote from Spectra:

Yes they sell this method for $500 or so I think.

They sell the idicator, but its formula is fully described in the book for those who want to do it themselves.

I find this method one of the best chop indicators.