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In his book, "Trading in Choppy Markets",
Robert Barnes gives excellent definitions of trending and
choppy market states.
Barnes offers several indicator formulas in the book which address
these issues quite well.
Walt Downs
CIS Trading
http://cistrader.com
> In a message dated 12/3/98 10:12:40 AM, tlwyss@xxxxxxxxxxx writes:
>
> << Thanks much guys. I wonder if anyone has an
> original approach to making this prediction, other than
> the approach Toby Crabel takes in his book, which mainly
> deals with statistics based on range contraction and
> expansion, if I remember correctly. Terry>>
>
> I have had fairly good results using the ADX to diferentiate between choppy
> and trending markets in futures. If the ADX is rising the market is trending
> and you would want to use trend following strategies. If the ADX is declining
> you would do better using an oscillator or some counter trend method. Its not
> perfect but its the best I've been able to find. Hope this helps.
>
> Chuck LeBeau
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