Choppiness Index

Created by Autralian commodity trader, E.W. Dreiss, the Choppiness Index measures the market's trends and determines whether the market is trading sideways (ie, choppy) or trading in a trend going in either direction.

Study Type: Stand-alone


The Choppiness Index is helpful in confirming the current market condition. When the indicator has values closer to 100, the market is choppier (trading sideways), and when it has values closer to 0, the market is in a directional trend.

The indicator has two parameters to indicate the upper and lower thresholds for determining when the market is choppy. These levels typically use the same values as Fibonacci Retracements (61.8 and 38.2)


Period: (14) - Number of periods to use for the Exponential Moving Average

First Level: (62) - The level at which the market moves into a choppy position.

Second Level: (38) - The level at which the market moves out of a choppy position.