Extra indicators
Choppiness Index
Tells you whether the market is trending (low values) or going sideways in a choppy way (high values).
Die Idee in einfachen Worten
If the candles' sizes add up to much more than the overall range, the price has been going back and forth. If they add up to about the range, it went in one direction.
So wird gerechnet
Compares the sum of true ranges over N candles with the overall high–low range, on a 0–100 scale.
CHOP = 100 × log10( Σ ATR(1) over N ÷ (highest high − lowest low) ) ÷ log10(N) (N = 14)Anwendung
- Above 61.8: choppy, avoid trend strategies. Below 38.2: trending.
- A drop from high values often comes before a breakout.
Schlüsse ziehen
- It does not tell you direction.
Beispiel
After two weeks above 60, CHOP falls to 35 as the price breaks out: a trend has started.
Kurse in Beispielen dienen der Veranschaulichung.
Worauf man achten sollte
- Thresholds are rules of thumb.
Ein wenig Geschichte
Created by the Australian commodity trader E. W. Dreiss.
Nur Bildungsinhalte. Kein Indikator und kein Muster sagt die Zukunft voraus, und nichts hier ist eine Anlageberatung.