What Is The Choppiness Index & How To Trade With It

Choppiness Index Explained

To reduce losses during consolidation periods, it is important to use a tool for filtering trend direction in a trading strategy. One such technical indicator is the Choppiness Index created by E.W. Dreiss. The Choppiness Index indicator is is an indicator designed to determine if the market is either choppy (trading sideways) or not choppy (trading within a clear trend either up or down). What is the Choppiness Index indicator? The purpose of ChoppinessIindex is to determine price volatility, and the algorithm is based on accounting for the trading volume. To effectively use this tool in your trading, it is …READ MORE