Indicator to identify a range bound market.

Are there any indicators or logic to filter out the intraday sideways zone or no trade zone?

Sideways range bound moves come in all the time frames, as much as in the intraday levels. The best known filter is the ADX, it depends on how you are willing to fit in your trades both entries as well as exits.

As many filters we use to reduce the noise, we have to compromise on some winning trades too along with the filtering. Just the other day, one of my trader friends was telling me about using MACD itself to keep off from non-trending zone. His way of judgment was when the MACD coiling its zero line, it almost always is a range bound market. When the MACD is wide open and far away from its zero line it is a good trend.

After hearing from him, I did some testing to check these patterns on the charts, and it was right. But, again, by the time the trend is identified, we would have lost the first move into the trend. We should formulate a system which brings down the whipsaw counts and still keeps us in the market to catch any trend at the early stages. This I suppose is the research that most of the traders have been doing including me.

BraViSaTempleTree has a proprietary indicator to identify non trending zones. Using multiple time frames, we will be able to bring down the filtering process and still enable us to stay in the markets. This indicator is being coded into our new product to scan the stocks on a daily basis and reported on the site. This product 'Just Trade', which is a built in trading system to identify trades, use money management rules to your capital employed and record your trades for future reference, is due for launch shortly.