Whipsaw indicators

[tommcginnis]

Any oscillator will predict a whipsaw -- if you define "whipsaw" as a turn.
An oscillator will indicate a ripe turn sometimes *too* often.

But maybe somebody needs to define "whipsaw" before we go much further.
(Because right now, it's going to come out like "weed" -- "any plant that grows where I don't want it to.")

"A whipsaw is a market turn right where I don't wish it to happen."

Hmmmmm. Who can do better than that?

You've GOT to do better than that.

But when you do, you'll find that (for example) Lane's Stochastic, the MFI, and Wilder's ADX/DMI+/DMI-, where right there with you.

 

[lawrence-lugar]

Hey I'm new to trading and whipsaws scare me right now.

What indicators can I use to tell the difference between a whipsaw and a real trend forming?

Naturally, whipsaws and drawdowns scare you -- but that's something you better get use to real quick.
Usually, to see the promise land...you have to encounter some scary valleys and storms.

The second part of your question is more tougher to answer...that's The Million Dollar Question
The only thing I can tell you about that...try to see or sense the overall greater picture of things,

 

[agardnerii]

Naturally, whipsaws and drawdowns scare you -- but that's something you better get use to real quick.
Usually, to see the promise land...you have to encounter some scary valleys and storms.

The second part of your question is more tougher to answer...that's The Million Dollar Question
The only thing I can tell you about that...try to see or sense the overall greater picture of things,

I was just browsing YouTube and I came across Elliot Wave Theory. Theories like this a long with price action, volume, and some momentum indicators give me more confidence I can make a better educated guess.

 

[agardnerii]

Naturally, whipsaws and drawdowns scare you -- but that's something you better get use to real quick.
Usually, to see the promise land...you have to encounter some scary valleys and storms.

The second part of your question is more tougher to answer...that's The Million Dollar Question
The only thing I can tell you about that...try to see or sense the overall greater picture of things,

With the bigger trend in mind, I can stick out the whipsaws and consolidation patterns until I see a reversal trend forming.

 

[Frederick Foresight]

If I am concerned about a volatile whipsaw that may trigger my stop unnecessarily then I set my stops farther away and subsequently buy fewer shares.

If there appears to be more "noise" than "signal" (a possible definition of whipsaw?), then I would normally prefer to abstain from entry. Not all setups are created equal; you don't have to take every single one.

 

[tommcginnis]

I was just browsing YouTube and I came across Elliot Wave Theory. Theories like this a long with price action, volume, and some momentum indicators give me more confidence I can make a better educated guess.

A note on the so-called "Elliot Wave Theory" --
since all indicators use past price and/or volume as their inputs, arguing about the merits of individual indicators is too often like arguing about whether a Ford is better/worse than a Mercury. Jeez. That said, I make an exception for the folly known as Elliot Wave Theory:
it's not predictive; it's not a theory; it can't form a useful hypothesis; it will lose you money.

 

[murray t turtle]

If you could predict the future, you should focus on lotteries. As for the market, I think the best thing you can be is responsive rather than predictive. The few times you might actually "predict" the market will set you up for the many times that you don't. Just my opinion, of course.

%%
Trying to predict the market is like tying shoe laces with mittens on; could do it sometimes, but that may not be the best way to do it.LOL . The trend is your friend--not a prediction.

 

[PistolPete]

I only take signals on rising ATR , low and declining atr is low momentum/volume , follow the money flow