Hi All
Average volume in these volatile type markets is probably difficult to define, volume is low at the moment because it’s the new year and the employment numbers are due out on Friday (expect some big swings at that time).
Historically stock markets tend to be volatile in the winter months and quiet with less volume in the summer, but in these volatile times things are topsy turvy and at the moment markets are drawing breath after the volatility of 2008.
We have to cope with these constant changing conditions and that’s the problem with system trading
An ATR study on a daily chart or maybe on a 60 min is a good indicator giving the average bar range for the past 14 periods and could help. Another one is the ADX on say an 89 or 144 tick when it drops below 20 the market is ranging. Both of these are good filters, not sure how you would program them in though !
Average volume in these volatile type markets is probably difficult to define, volume is low at the moment because it’s the new year and the employment numbers are due out on Friday (expect some big swings at that time).
Historically stock markets tend to be volatile in the winter months and quiet with less volume in the summer, but in these volatile times things are topsy turvy and at the moment markets are drawing breath after the volatility of 2008.
We have to cope with these constant changing conditions and that’s the problem with system trading
An ATR study on a daily chart or maybe on a 60 min is a good indicator giving the average bar range for the past 14 periods and could help. Another one is the ADX on say an 89 or 144 tick when it drops below 20 the market is ranging. Both of these are good filters, not sure how you would program them in though !