The Recantangle of death pattern

[Harndog]

Hi:
I just reviewed my monthly trade log and I noticed is my overtrading and trading in what I call "The Rectangle of Death."
Essentailly, these periods are correction areas marked by overlapping price bars. And, as I use a breakout strategy these areas are deadly to my P/L.
Any suggetions?
I have been researching the ADX tool and I am thinking about reading more on price trends.
Or, is this just my unacceptence of the reality of trading - the market is random 75 to 80% of the time and trends only 15%. I am laughing thinking about Will Rogers statement, "When you find yourself in a hole, stop digging."
Harndog

[Guest]

Determining market flavor

I too am looking for a measurable way to determine the behaviour or flavor of the market (Emini futures). Using program output to determine market position and trading methods (market entry, exit) works very well in trending markets. Trading non trending markets using this method tends to fill the pockets of my broker and bleeds my account. Trading in these markets is more profitable using market/limit entries and profit targets for the exits. Can anyone provide me some insight as to what technical analysis tools I can use to assist me in developing parametric methods to assist me in determining the behaviour or flavor of the market?

[Guest]

Linus,

I had not thought of using fib extensions (but I see advantages) but I am using Renko along with Brad Matheny's MENT. Renko's usefulness is limited due to the lagging of indicators in the Charts , however, it is a tool . I checked out the link you had sent me, and it was interesting and informative, thank you. I also appreciated and enjoyed the PM.
I am day-trading the E-minis as time permits, however, my day job gets in the way (but pays the bills). I work for an electric utility in the midwest that lost all of it's power plants during a recent power outage (you may heard of). As a result, I have been working large number of hours (odd ones at that) to get power plant(s) back on-line ... no time to trade.

Regards

Steve