filtering out choppiness

[chris2980]

I have been trying to figure out a way to filter out stocks that are choppy vs stocks that arent. The best way to describe this is by an example.

I want to be able to see stocks that are trading like this:

versus more choppy stocks like this:

These are cvlt on 9/27 and chk on 9/28 on the 5 minute time frame. Both of these stocks formed inside bars on the 15 minute chart, but obviously one stocks looks better than the other. Is there a volatility indicator or something else anyone can think of to filter out these types of choppy charts on the 5 minute time frame?

I tried filtering using adx but it doesnt seem to help. I have use a shorter time frame to filter out the choppiness but seems to filter out a lot of winners too. Any advise would be appreciated.

 

[Splitlink]

I do try trend lines across averages, instead of across bars. Like most things, it works sometimes, but it seems to me that averages, using whatever one you like, damp out price movements and they do help , especial on the lower time frames, to concentrate on bars that are giving signals confirmed by them. Not reversing unless the TL is cut, for instance.

I've tried so many ways. This is, just, one!

 

[Vicorka]

I'm using ATR (Average True Range) in %. Traditionally this indicator is measured in points but when you want to compare stocks you cannot use points as one stock could be traded above $50 per share and another could be traded below $10 per share. Therefore, you need to have ATR%. Define the level % of fluctuation you prefer and check.

I found ATR in % at
Technical analysis, Average True Range, ATR, charts, analysis

 

[Vicorka]

Try ATR (average true range). ATR measure volatility only, it does not do rend predictions. Use 10-14 bar or bigger period for ATR to see the average volatility. If you want to compare several stocks you have to use ATR in percent and not in the points as it provided traditionally. Why? Simply because one stock could be traded over $50 and second could be traded below $10 and you cannot compare volatility of these two stocks in points. Volatility should be expressed in percent.

 

[natureboy]

You could come up with high low logic, describe the bars in relation to each other. Write out what you see in the price action you want, relations of highs and lows bar to last bar, bar to five bars ago, etc. It would be work, although you could come up with the simplest way to describe what you want based on bar to bar characteristics, then code that up..

 

[Shakone]

Seems like in the second example your moving averages are being skewed by the fact that the market has gapped down. So just alter that, and the second example would look choppy ont he moving averages.

 

[Hakuna Matata]

there is nothing that will consistently do what you want except your BRAIN. USE THAT!!

 

[malaguti]

Use Point & Figure, choppiness goes away and you are only left with the trend

 

[Jason101]

I use the ACI (Anti Chop Indicator). It tells me without fail if the trend is to continue for the next 3 weeks (or 15 bars).

 

[wackypete2]

I use the ACI (Anti Chop Indicator). It tells me without fail if the trend is to continue for the next 3 weeks (or 15 bars).

This one?