Anybody trading during chop? I'm looking for generic method(s), not a detailed plan. Generic trend trading is straightforward: * Buy if the trend is up. * Shortsell if the trend is down. * Exit if the trend disappears. Anything similar for chop trading? Thanks.
Based upon your generic example of trend trading... * Avoid trading when there's chop * Trade when there's no chop * Exit trade when chop shows up That's about as generic as it gets unless you're really after specifics (details).
Trend, Range and Chop are different types of price action. Trend and Range can be traded...Chop is just price noise (something I can't trade). Yet, now we're starting to get into details. Maybe chart examples by kut2k2 showing his definition of chop will clear things up a little.
Yeah what you wrote has been my chop-trading "strategy" thus far. But I figured maybe since chop and trends are opposites that there was some "counter-trend" strategy that was possible. What about scalping? Is it true that scalping works best during chop? Thanks for responding.
I'm now convince that you're really talking about range versus trend. Thus, you're really calling range as chop via your statement its opposite of trend. Regardless, there's an old thread that may be useful about chop and it has chart examples. @ http://www.elitetrader.com/et/index.php?threads/help-ive-been-chopped.277421/ As for scalping, I know scalpers that only prefer trend. I also know scalpers that only prefer range and I know scalpers that only prefer chop. Thus, I really don't know what your definition is about chop but that link above should be useful to you because it does get into the definition of chop.
I always thought range was a mix between chop and trend. Or maybe range is chop in a higher timeframe than the one you're recording data in. What do you think?
Here's a good chart example I pulled out of that recommended thread link I gave to you a few minutes ago. http://www.elitetrader.com/et/index.php?attachments/screen-shot-2013-08-13-at-8-38-35-pm-png.138424/ The price action in the highlighted rectangles is what I call chop (not range, not trend). Its just price noise...you often see expanding intervals that quickly get retraced and after awhile you notice price action really hasn't gotten anywhere until eventually there's some sort'uv breakout. The type of chop I hate is the type that eventually has a breakout and then it soon goes back into another chop price action or the price action after the breakout returns back into the range of the prior chop. That's why I'm curious about your definition of chop. To me, chop can occur within range or trend. Thus, chop can be part turning points in a range, chop can be part of continuation price action in a trend and so on.
I answered Autodidact's question before I saw your response here so the answer to how I see chop is there. If as you indicate scalping can be profitable in all types of markets then maybe that's the answer to how to trade chop. Frankly it sounds too good to be true. If scalping is that versatile, why aren't we all learning how to do it?