I thought I would post two versions of my XJO context file.
This is the longer term view – as you can see a very ordinary congesting market that has been range trading for close to a year.
This is the context view compressed and I wanted to talk about signals within this chop.
The issue arises for trend followers as to what to do when our system fires within this sort of noise. Traditionally in equity trading the ranges are too small to justify taking the signals. However, this is a leverage instrument with a range of almost 400 points. These two characteristics in my view justify taking signals with the congestion zone provided they comply with all your other rules.
Yes…You cannot find 400 points on the street.