Market Type - Trending or Choppy

[whoDAT]

I've researched lots of methods (maybe 50) to assign a market type as either trending or choppy. And nothing has panned out...

My wants:

• Works on indexes (SPX, R2K).
• Works in 15 min - 1 hour timeframes.
• Gives a binary indication choppy or trending.
• Results in indicating that 30%-70% of a month is choppy or trending.
• Makes less than 20 indication changes per month.
• Has contiguous indications of choppy vs. trending.
• Not too laggy.
  

What's your recommendation? Drop a sentence, a paragraph, link or code below.

 

[BenTen]

What have you tried so far?

 

[antwerks]

I've researched lots of methods (maybe 50) to assign a market type as either trending or choppy. And nothing has panned out...

My wants:

• Works on indexes (SPX, R2K).
• Works in 15 min - 1 hour timeframes.
• Gives a binary indication choppy or trending.
• Results in indicating that 30%-70% of a month is choppy or trending.
• Makes less than 20 indication changes per month.
• Has contiguous indications of choppy vs. trending.
• Not too laggy.

What's your recommendation? Drop a sentence, a paragraph, link or code below.

VIP-ers can try this:
https://usethinkscript.com/threads/swing-sharpe-market-type-trending-or-choppy.22240/
- it is faster than MA's and MACD and RSI and actually works a little better on indexes but does very well with equities.

The Swing Sharpe Engine v3

• regimeSharpe → structure
• swingSharpe → short-term trend health

The script labels:
TRENDING
CONSOLIDATING
DISTRIBUTION

This maps well to:

Script Label	Binary Regime
REGIME: TRENDING	Trending
CONSOLIDATING	Choppy
DISTRIBUTION	Trending (bear)

 

[antwerks]

oops sorry @BenTen - I forgot which forum I was in -

 

[BenTen]

@antwerks No worries. All good.

@whoDAT Did you look at this wonderful resource that @merryDay put together? Here it is https://usethinkscript.com/threads/...contraction-congestion-for-thinkorswim.11512/

I think you can find something useful there.

 

[antwerks]

And for all you readers not to brag or anything but if you play The Wheel, directionals or Iron Condors or any type of Butterfly or a long swing trader you would pay more for that script commercially than the cost of the VIP!!! VIP has even better and more of them - worth the investments. Plus you might be able to write it off your taxes as investment subscription, advice and research ummmmm.

 

[whoDAT]

What have you tried so far?

ADX, Moving Averages, high/low lookbacks, slope identification, Choppiness Index (Tradingview), Donchian channels, Relative Vigor Index, Chop Zone with Moving Average.

What works so far are my eyeballs..

 

[antwerks]

ADX, Moving Averages, high/low lookbacks, slope identification, Choppiness Index (Tradingview), Donchian channels, Relative Vigor Index, Chop Zone with Moving Average.

What works so far are my eyeballs..

THEN I NEED The PRESCRIPTION!!!! LOL