Download and learn how to trade the Choppiness Index indicator, a range-bound oscillator designed to determine if the market is moving sideways or trending. CHOP does not forecast the market direction, it is used to for defining the market’s trendiness only. As you can see from the picture below; higher values equal more choppiness, while lower values indicate directional trending.
It produces values that operate between 0 and 100:
- The closer the value is to 100, the higher the choppiness (sideways movement)
- The closer the value is to 0, the stronger the market is terending
- File: Choppiness Index.mq4
- Size: 8 Kb