if you understand the principles behind what austinp is getting at, you will be wealthy beyond measure.
http://www.forexfactory.com/showthread.php?t=22663 check the principles, learn understand and implement with discipline.
As was said earlier, CONTEXT is critical, notice prices in relation to MA from your box as compared to Volman's.
I got chopped my butt off today. In the morning I was trading like a god but by afternoon I got a thousand cuts trading YM. I will be reading this thread to hopefully learn something new and stop trading after a series of losses in a row.
You trade like this I trade like a scared ass money (monkey see / monkey do) Monkey does not like to get cut - hurt's too much (in many ways) Monkey stops - pain stops Simple..., but rather effective RN
hahaha funny yet so much wisdom!! thanks sir. After looking back on some past threads regarding chop, I am going to incorporate DbPhoenix's rules into my trading plan. "In my trading plan, it's very simple: if I'm "stopped out"* of both sides of a trade sequentially, I'm in chop, or at least the beginning of chop (this signals the very beginning, so the characteristic range that is coincident with chop is not yet obvious to one who has no plan). This may resolve itself in minutes or it may not resolve itself for hours. Friday was an excellent example." Would have saved me $700 I've also seen some using bollinger with 1 and 2 standard deviations or MA coiling around price, but......."Let's assume we both define chop in the same way, whatever that may be. If you limit yourself to clean setups, then you will not likely enter during obvious chop, as you define it. However, if you get stopped out, and assuming you used an "appropriate" protective stop (again, whatever that may be), then the market has either reversed or possibly gone into chop. And so you wait for the next clean setup that, ideally, doesn't occur in obvious chop. Waiting is good."
NoDoji, sorry to revive your thread but if I can get some opinions on what I could have done better, please let me know and share your wisdom!