Hi Folks,
For all you daily traders out there, how do you trade choppy markets? When I say choppy I don’t mean it starts a clear range for a short spell that can be traded but it just seems to be a mess like the screen shot below.
The screen shot is just a short version, but if you’re looking at this type of activity on the daily and it goes on for like this for days, do you trade it or just wait for it to clear up?
Not quite sure what you mean by “daily traders”, Stev … (it could mean specifically “intraday traders”, or “people trading from daily charts, i.e. 24-hour bars”, or just “people who trade every day”?). Then again, maybe it doesn’t matter much, because forex charts are fractal anyway, so whatever applies to 24-hour bars generally applies intraday, on faster time-frames, too?
For myself, as an intraday-only trader, I avoid them.
Your image is perhaps truncated at the top, but it strikes me that it might well show a fairly clear 1-2-3 formation, and be tradable as a reversal? (I [U]do[/U] trade those, and they’re among my high-win-rate trades.)