$59.00

The Choppiness Index is a volatility indicator developed by Australian commodity trader Bill Dreiss to indicate whether a market is trending or ranging. Values range between 0 and 100, with low values indicating a strong trend and high values signaling consolidation.

 

Choppiness Index settings

Alerts

  • Start trending, i.e. the index moves below 50

Strength Signals

Trending (1.0)When the index is below the lower line (38.2)
Strong (0.75)When the index is below 50 and falling
Medium (0.5)When the other conditions aren’t valid
Weak (0.25)When the index is above 50 and rising
No trend (0)When the index is above the upper line (62.8)
The signal multiplies the total combined value of other indicators

Settings

PeriodThe number of periods evaluated by the indicator
PlotsThe style of the different plots of the indicator

The Choppiness indicator does not show you the direction of a trend, but shows you the amount of choppiness of the price.
In that regard you can compare it with the ADX.

A choppiness value below 50 is regarded as reasonable smooth, and a value above it as choppy. But the behavior of the indicator varies depending on the Instrument.