Been getting whipsawed lately with my usual RSI and MACD setup when markets get choppy.
Maybe I need something that filters out the noise better. What indicators actually work when volatility spikes?
Price action across multiple timeframes beats any single indicator when things get choppy.
I look for support/resistance that aligns on daily, 4-hour, and 1-hour charts. When all three show the same key level, those zones typically hold even during volatile spikes.
Volume tells you what’s really happening. Price hits resistance on weak volume? It’s likely breaking through.
VSA completely changed how I trade volatile markets. Regular oscillators go haywire when news drops, but VSA shows what smart money’s really doing.
High volume with tight spreads? Move’s probably done. Low volume with wide spreads means the big players aren’t buying yet. This alone saved me from countless fake breakouts.
I also use the 20 EMA on higher timeframes as my main filter. Price above it on 4H? I only take longs on 1H. Simple, but keeps me out of counter-trend trades when volatility makes every setup look golden.
Stochastic RSI beats regular RSI in choppy markets too. Reacts faster so you don’t get stuck holding bags as long.
ATR is a lifesaver in choppy markets. Unlike RSI or MACD that just show direction, it actually measures how much prices are swinging around. I use it to size positions and set stops. When ATR jumps up, I go smaller or give my stops more room. Most people skip this and get chopped up by regular market movement. Bollinger Bands are solid too. In high volatility, price hitting the bands usually means it’ll keep going, not bounce back. Put ATR and BB together for entries and you’ll dodge most of the whipsaws.