How do You decide Range or Chop?

Quote from Handle123:

I prefer to use John Hill's "Thrust bar" where one bar has leaped into a direction, and also using an EMA, so that the Thrust bar has moved away from the EMA. If EMA is cutting through middle of handful of bars, this is chop. EMA sloping and only touching like the bottoms of bars is clear sign market is UP trend. Often times Thrust bar is the bar breaking trendlines and chart patterns but must close in the 25% away from trendline. Not all trendline breakages are the same as many are areas of hitting the stops to entice inexpereinced to take a position only to assume slippage, breakeven and of course losses when it is a false breakout. Often times, the second move out of the Price pattern offers reduced risk and more definitive direction.

Two books by John Hill written in late 70's, Stock & Commodity Market Trend Trading by Advanced Technical Analysis and Scientific Interpretation of Barcharts are best books around on Price Action, most of the charts done freehand.
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Interesting. Keep talking
 
Quote from satchel:

I'm feeling generous.
Mathematically accumulate the momentum from the 00:00 time. If peaks by NYSE open then you are good to go to bet on trend. If peaks at Noon (give or take +/- x hrs, reduce/increase bet size) then it's a good bet for failed trend. See today.
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The second part of the post is clear but the first one is very obscure, at least to me.

How do you mathematically accumulate momentum from midnight ?
 
When this undicator is consistently wrong. Using your intuition to decide on entries also works, because in chop what looks right is always wrong.
 

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The market is always both ranging and trending... It's just that higher trend speeds suppress the size of dips/bounces so they are not very noticeable.
 
For me, range is when you have enough room to make a profitable trade. Pure chop would be sideways movement where price is just going up down by a few ticks.
 
Good question that deserves the correct answer.

You can not predict range days or chop days for highly liquidity instruments. You're better off tossing a coin and letting the coin tell you what type of day it will be
 
Quote from BobbiDigital:

So I've heard by many on E.T. that they use different strategies for different day types. By that I mean is the market trending or chopping/ranging.

Currently, I watch the first 5 minute bar type, and the first 30-60 minutes a la Market Profile to formulate an opinion.

Does anyone have a more technical approach or thoughts they would mind sharing? Maybe the first hour it's 10 minute bars with higher highs and lows is trend or alternating red/green bars of equal size may imply chop.

Mostly curious if anyone does it from a technical standpoint or if it's more feel.


Thanks.

BD
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It looks like you're looking to predict rather than detect. Just do a google search on "trend day" and you'll find posts like this one:

http://traderfeed.blogspot.com/2009/01/six-ways-to-identify-trend-day-in-stock.html
 
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