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

[padutrader]

when average volume drops

volume is leading indicator and that is the problem with it: you never know how much it leads by.

chop generally refers to market action around ema and whenever it is not leaving it is in fact the definition of chop

 

[zghorner]

i think all experienced traders know that trading is not simply matter of taking set ups- if it were that, no one would lose-but an issue of evaluating the quality of set up and that of context and last finally adding a healthy dose of instinct or street smartness, which sometimes means to look a gift horse in the mouth.

On top of needing ways to shift odds into your favor...I think you have to become a highly developed person to do this. Like in a lot ways. So many things need to be well refined or you will be eaten. Seem this way to me at least.

@destriero You mentioned the other day while roasting someone that they need to "dig deeper to find a legit edge" because they didn't have one...do you consider backtesting for movement behavior probabilities useful at all? Do you consider anything outside of some type of arb a legit edge?

thanks

 

[murray t turtle]

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.

%%
YES, may tighten up stops sometimes;
yes it moved in my direction better, after I took some profits, but my cash position was needing a bit improvement regardless . I like better trends than that + the smaller one I did exits on today.
Can find a better trend than that ,candle-charts;
especially when that market that has gone near nothing +up spiked rocket ;
then gone worse\ negative .I like some of XOM,CVX,MRO,DINO sector, not just the TX tea part of it.

 

[schizo]

I'll stick with it over arbitrary "touches" if you don't mind.

I don't mind, but how many times do I need to remind you that you should grow them balls? You're too thin-skinned.

 

[schizo]

In continuation to the previous chart, here's a possible channel (aka chop) in play.

 

[schizo]

As I said, pullbacks are 3-touches and range is 4-touches or more. It's still considered a pullback so plan ahead for any changes.

 

[schizo]

So here's a perfect example. You might have initially thought this was a range, but it's looking more like a pullback. Suppose you shorted the top of the range and the candle closed above the upper channel, you should then consider the alternative of getting out or reversing your trade.

 

[SunTrader]

I don't mind, but how many times do I need to remind you that you should grow them balls? You're too thin-skinned.

LOL why? Did you take that as SCREAMING at you!!!!!!!!!!!!

Come on man.

 

[ironchef]

Let's also not forget that oftentimes you wouldn't know it's a chop until it's well over.

View attachment 327349

Unfortunately, so true.

 

[schizo]

Now it's definitely a "chop zone". So trade accordingly. I hope this answered your original question, @zghorner.

BTW this chart is in REAL TIME!