If you’ve ever found yourself stuck in the mud during choppy price action, you’re not alone. Many traders rely on volume and volatility indicators to gauge price movement, but they often fall short in those flat periods. That’s where the Cercós Chaos Indicator comes into play. Designed to filter out those annoying sideways movements, this tool helps you catch the start of most trends.
The beauty of this indicator lies in its efficiency on lower timeframes, specifically those ranging from 5 to 10 minutes.
How does it work? Well, it’s pretty straightforward. When the green line sits above the red line, you’re clear to trade. Conversely, if the green line dips below the red, you’re likely facing a range or choppy price action. In essence, it’s your go-to signal for when to step back.
Remember, though: this is primarily a volatility indicator, so it’s not meant for entry signals on its own. It’s best to pair it up with other entry signal indicators for a well-rounded strategy.
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