Identify a choppy market?

[FXdingo]

Ok, it's definitely easiest to make money in trending markets, but you can lose it all quickly in choppy ranging conditions. How do you guys identify approaching choppy market conditions? Rather than trading them and finding out the hard way that you should have stayed out that day.

[narafa]

No trading model in the whole world can tell you if there is a choppy market conditions are coming or not, in other words, nothing in the world will be able to predict the future price action.

Good trading models only tell you that their is a higher probability of choppy action in the future and a lower probability of trending price action, so you would better be out of the market if you are not an aggressive trader, and in the market with a different strategy if you are aggressive and want to benefit from the probable choppy action.

Thanks,

Nader

[Fxexcel]

Fxdingo,

One way I use to determine the market feel is to put a 144EMA on the chart. If the EMA is flat, then the market is ranging, then I use my ranging strategy. When the EMA is sloping up/down then I use my trending strategy.
But narafa is right, it is just a measure of probability, no certainties. Just like every system.

Regards
Fxexcel
www.straightforex.com