Chop regimes are hard to predict because you're banking on momentum stalling long enough for it to reverse trend. But we know momentum usually persists and it's hard to differentiate between a pullback vs. chop
This is a good point, I suppose I view it on a timeframe to timeframe basis, due to the high leverage I use, I have to stay away from short term (1h-4h) sideways movement because my stop will get smacked repeatedly as I use incredibly tight stops. On a daily or weekly basis you wouldn’t notice this chop, it would just be a couple “inside days” rather than a chop regime. All depends on timeframe, sizing, and leverage I suppose.
I also personally don’t bank on momentum stalling enough to reverse trend, I just don’t want to be involved unless momentum is clear and trending on the timeframe I am viewing based on my stop.
I believe silver at the moment on the hourly and four hour is correcting sideways, I don’t think it will reverse or pull back much beyond where it has, I just can’t be long anywhere inside the range, below the range I enter longs with tight stops though.
Maybe I need to clarify these points better in my writing.
No no you're good, sometimes I forget there are people trading on a smaller timeframe lol.
I don't know if this would be of any help but look at this video from Linda Raschke (she's a verified futures trader that's be in the game for a while now). I don't subscribe to how she trades but I think she developed something you'd be interested in exploring.
She talks about using multiple periods of rates-of-change to visualize contraction and expansion points on a chart. Many swing traders try to capitalize off of contraction -> expansion -> contraction like patterns.
When ROCs are intertwine, there's likely a contraction and when they're separated, there's likely an expansion going on.
She talks about the price action that's likely to follow on these contraction/expansion points.
May or may not be of any use to you I don't know, but this is a way to identify momentum slowing down and getting ahead of a minor pullback and now waiting for a full on shift in momentum.
The fund - Manager
Chop regimes are hard to predict because you're banking on momentum stalling long enough for it to reverse trend. But we know momentum usually persists and it's hard to differentiate between a pullback vs. chop
This is a good point, I suppose I view it on a timeframe to timeframe basis, due to the high leverage I use, I have to stay away from short term (1h-4h) sideways movement because my stop will get smacked repeatedly as I use incredibly tight stops. On a daily or weekly basis you wouldn’t notice this chop, it would just be a couple “inside days” rather than a chop regime. All depends on timeframe, sizing, and leverage I suppose.
I also personally don’t bank on momentum stalling enough to reverse trend, I just don’t want to be involved unless momentum is clear and trending on the timeframe I am viewing based on my stop.
I believe silver at the moment on the hourly and four hour is correcting sideways, I don’t think it will reverse or pull back much beyond where it has, I just can’t be long anywhere inside the range, below the range I enter longs with tight stops though.
Maybe I need to clarify these points better in my writing.
No no you're good, sometimes I forget there are people trading on a smaller timeframe lol.
I don't know if this would be of any help but look at this video from Linda Raschke (she's a verified futures trader that's be in the game for a while now). I don't subscribe to how she trades but I think she developed something you'd be interested in exploring.
She talks about using multiple periods of rates-of-change to visualize contraction and expansion points on a chart. Many swing traders try to capitalize off of contraction -> expansion -> contraction like patterns.
When ROCs are intertwine, there's likely a contraction and when they're separated, there's likely an expansion going on.
She talks about the price action that's likely to follow on these contraction/expansion points.
It's from 31:45 to 41:00:
https://www.youtube.com/watch?v=NDg0VZFvFXU
May or may not be of any use to you I don't know, but this is a way to identify momentum slowing down and getting ahead of a minor pullback and now waiting for a full on shift in momentum.
Thank you Randy hell yes, I love any education, I’m sure there is plenty I can take away from this. Thank you very much!
not waiting*
Send this guy 2, 3 years school And forget