After long hardwork, I'd like to share one of the best choppy filter. Discovered today and like to share with others. This method is very useful for avoiding choppy area. If you saw red or yellow bars and followed by just 2 or 3 green bar then yellow/red again, be cautious. That's choppy zone. This is truly my original idea and never found one on the net. So the Histogram below is 'Time Histogram' it calculate how many seconds to create one bar. The longer the higher and vice versa. Also we can customed the colour. Green means it less then 30 seconds for example.
I used tick chart and it's obvious that only tick chart that worked with time histogram. Now, how it works. The fundamentals is: If it takes longer time to create one candlestick, means low participants in it. And if there's green-green-yellow-green-red-yellow, means that not much movement in the market. Being chopped is high if we used breakout technique. Just waiting until 5-6 green bar in the row and you're ready to enter. This filter is definitely veryuseful to reduce Stop Losses. If you can reduce failed stop losses to 50%, imagine how much you can make.
Hope this helps, question and suggestions are welcome :)
Happy Thanksgiving.
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