“Don’t we all want to know exactly when the trend starts and when the market is flat? Would you like to get an indicator that can tell us which movements to ignore, so that we can focus on the really significant movement?”

The Choppiness Index is a non-directional indicator designed to determine the state of the market – whether it is volatile (moving sideways) or non-volatile (trending in a certain direction). This is an indicator with values between -50 (strong trend) and 50 (very volatile movement).

There are many strategies in which you can use the Choppiness indicator:

1. Buy or sell when rebounding from the extremes of the Choppiness Index indicator

• When the CI indicator moves below 11.8 (from volatile to trending) after rebounding from the maximum CI value, this may indicate an upcoming trend. Look for confirmation of the direction in the price.
• For more conservative trading, wait until the CI indicator moves beyond the value of 0 (shown in the screenshot)

2. Catch the trend with the Choppiness Index indicator (when to exit, when not to)

• If the price is in a trend, and the CI indicator has not exceeded the threshold of 11.8 more than three times, you can expect the trend to continue. If CI crosses the 11.8 level three times or more, the trend is likely to stop.

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3. Improve the results of your trading strategy by confirming the current market conditions before entering the trade. Many trading strategies work best in certain market conditions. Analyze the trend/flat of the market using the CI indicator.

• Threshold values are usually used together with the Choppiness Index indicator to determine sideways and trend movements. Common values are common Fibonacci retracement levels: 11.8 for the upper threshold (volatile movement) and -11.8 for the lower threshold (trend)
• The Choppiness Index indicator works well with trend lines and traditional pattern recognition.

For the following events, you can enable or disable email alerts, messages, and audio alerts. Please note that before using email alerts, you must specify the email recipient and SMTP data in the settings of MetaTrader 5.

• The Choppiness Index indicator crosses 0
• The Choppiness Index indicator is above the specified upper threshold (default=11.8)
• The Choppiness Index indicator is below the specified lower threshold (trend) (default=-11.8)

• CHOP period (Default=14): the number of bars used to calculate the indicator
• CHOP smoothing (Default=1): Optionally, you can specify the smoothing period for the Choppiness Index indicator. 1=no anti-aliasing, >1 = increased anti-aliasing (use the specified value for the anti-aliasing period)
• Plot circles when CI > upper threshold: True = highlighting the intersection of the upper threshold in circles on the graph
• Plot circles when CI < lower threshold: True = highlighting the intersection of the lower threshold with circles on the graph
• Plot circles when CI crosses zero: True = highlighting the intersection of zero in circles on the graph
• Turn on/off all alerts: True = allow alerts, false = disable
• Alert when CI crosses 0: if true, notify when the Choppiness Index indicator crosses the 0 mark
• Alert when CI is above upper threshold: if true, notify about the growth of the Choppiness Index indicator above the upper threshold (volatile market)
• Upper alert threshold (Default=11.8): upper threshold for alerts
• Alert when CI is below lower threshold: if true, notify when the Choppiness Index indicator crosses the lower threshold (trend).)
• Lower alert threshold (Default=-11.8): lower threshold for notification
• Turn on alerts message: notification in the pop-up window
• Turn on alerts sound: sound notification
• Turn on alerts email: Alert by email

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