How do you Avoid Chop without missing the break (intraday)?

[padutrader]

The prime brokers are trying to drive the trading as far away from VWAP as possible. This is because they are obligated to deliver VWAP. Therefore, they have an incentive to keep overdone trends alive, and make sure the bulk of their volume gets done at prices favorable to VWAP.

My advice is to always be aware of where VWAP is and keep an eye out for where the size trading could best manipulate it. I use a machine learning function on prices but VWAP is always the real story. Look up guaranteed VWAP for more info. The real size is getting done by banks and the execution price is guaranteed before VWAP is even known. Let that sink in.

maybe big money is seeing something WVAP or MACD and doing something but it is the footprint or result of that action that is can be seen and traded.
you do not need to see the reasons why someone is doing something: only the result

and the result is price action. price action is the question and answer

 

[padutrader]

@schizo's instructions on a piece of paper and tried to trade with it in real time.

Mostly I couldn't recognize the patterns and mostly don't behave like they said. Need more practice I guess.

mark it on a chart and show me.post it.

 

[padutrader]

Thank you man I've always appreciated your help. I use the daily chart to help determine directional bias at the start of the day. I will set trendlines, support/resistance off long term charts also as I believe they hold some predictive value..."support broken turns into resistance" and vice versa etc...

Sticking to pretty basic stuff. I don't have as much faith in patterns as many ET members though.

anything you do is useless if you cannot discern the destination or result of your labor.

in trading it is discerned, not by whether it is double top or the second leg or a doji but it is decided by probability.
trading is math.

 

[tony.m]

if you see a grave stone in cemetery it makes sense.

not on a highway

Hello Padu

 

[maxinger]

if you see a grave stone in cemetery it makes sense.

not on a highway

Somewhere in China

 

[BuzzTrader]

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You should've bought below the Big red bar (3 bars after 12:00). This was a long trade because you want to catch the reversal up after it breaks from a sideways period. When that reversal was weakening/not happening, Take profit/short on the weak momentum you were getting for a 2nd leg down.

 

[padutrader]

Hello Padu

yes it does not make sense

 

[padutrader]

Or you can scalp within one 5-min bar.

WHAT?

Are you copying me.. it makes the best sense. it tests both extremes more than once so it is the most certain that you will get the target. highest probability low reward

 

[padutrader]

Like weather patterns, no two charts or PA are the same. I wrote down @padutrader's, @schizo's instructions on a piece of paper and tried to trade with it in real time.

Mostly I couldn't recognize the patterns and mostly don't behave like they said. Need more practice I guess.

another strategy is wait for a trendline break of a move and then take the first signal to enter in the direction of the move .
if the move is strong, then the break of a trendline, may be a pb [confirmed when it ends] and so a with trend signal, means the end of that pb.

 

[Scataphagos]

When this occurs during liquid hours it tends to beat me up pretty bad. Best I can come up with so far is staying out when average volume drops and look to position on the first pop but would appreciate some tips from more seasoned traders. Setting channel lines with alerts? Any of you simply tighten profit targets and fade the wicks while looking to reverse if she breaks against you?

View attachment 327279

trading hard.

When a trader "tries to avoid chop", he misses many opportunities. When a trader "tries to trade chop", he likely takes too many losses (hopefully small ones)... and because of that also likely to miss opportunities.

Bottom Line... When chop is identified, (1) either stand aside until chop resolves, or (2) only fade the bottoms/tops of the range... as for anything in the middle of the range, fuggetaboutit. Then be ready to follow the breakout.

KISS, baby!