Discussion in 'Index Futures' started by blackchip, May 22, 2007.
Are there any good techniques out there for deciding when to stay out?
You mean a good technique in order to predict the future? Hmmmm let me think!!!
Here's a few things I use for the YM:
-If the moving averages are FLAT (9/20 EMA)
-If advance/declines are between -200 and +200
-Candles. If we've been in a narrow sideways pattern for hours
If any of these things are present, I wont even trade. Or I'll wait for a break out. And of course you should always look at relative volume.
CajunSniper / Puretick.com Administrator-Trader
Lots of opportunity on choppy days but you have to turn your indicators off and go with the flow.
John Carter discusses it in his book. One of the ways to identify a chop is to put bollinger bands (20, 2) and keltner channel (1.5, 20) on any chart, and when both BB get inside keltner channel it is chop.
on the ES, if it opens inside yesterdays range and volume is less then about 150k contracts total in the first 35-45 min. of RTH, then it usually means big players are not around (yet) and ES will probably get pushed around by the locals on the floor of the big S&P.....but that can/will change in an instant as soon as size moves in.
i look at other things as well, but none that i can share here.
Volatility Analysis and those days you call chop or flat usually have a couple of good moves for a few points before reverting back to the chop or flat price behavior.
(a.k.a. NihabaAshi) Japanese Candlestick term
Thanks for the good tips folks.
What are you using for volatility analysis?
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