The Choppiness Index is a non-directional indicator designed to determine if the market is choppy (trading sideways) or not choppy (trading within a trend in either direction). It is an oscillating indicator between -50 (very trendy) and +50 (very choppy).
There are many strategies for trading using the Choppiness Indicator:
1. Buy or sell the breakout rebounding from extreme Choppiness Index values
There are many strategies for trading using the Choppiness Indicator:
1. Buy or sell the breakout rebounding from extreme Choppiness Index values
- When CI moves below +11.8 (choppy to trendy) after rebounding from a high CI value, this may indicate upcoming trend. Look for confirmation of direction in the price
- For a more conservative trade, wait until the CI moves past 0 (shown in screenshot)
