How to Add Choppiness Index Indicator on MT4 Charts - Adding MT4 Choppiness Index Indicator
Step 1: Open Navigator Window on Platform
Open Navigator panel as shown and illustrated below: Go to 'View' menu (click on it), then choose 'Navigator' panel (click), or From Standard Tool-Bar click the 'Navigator' button or press keyboard shortcut keys 'Ctrl+N'
On Navigator panel, choose 'Indicators', (DoubleClick)
How to Add Choppiness Index Indicator on MetaTrader 4 - MT4 Choppiness Index Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding Choppiness Index MT4 Indicator
Expand the menu by clicking the expand button marker (+) or double click the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the Choppiness Index chart indicator from this list of indicators so as to add the Choppiness Index indicator on the chart.
How to Add Choppiness Index Indicator - From the Above window you can then place Choppiness Index indicator that you want on the chart
How to Add Custom Choppiness Index Indicator to MT4
If the indicator you want to add is a custom indicator - for example if the Choppiness Index indicator you want to add is a custom indicator you will need to first add this custom Choppiness Index indicator on the MT4 platform & then compile custom Choppiness Index indicator so that the newly added Choppiness Index custom indicator pops up on the list of custom indicators in MT4 platform.
To learn how to install Choppiness Index indicators on MT4, how to add Choppiness Index indicator window to MT4 and how to add Choppiness Index custom indicator in MT4 - How to add a custom Choppiness Index indicator in MetaTrader 4.
About Choppiness Index Indicator Guide
Choppiness Index Technical Analysis and Choppiness Index Signals
Developed by E.W. Dreiss
Choppiness Index was designed to be an easy but practical indicator to help traders to determine if the currency prices are trending or consolidating.
This Indicator is similar to ADX which is also designed to measure the strength or momentum of a market trend and determine if the market is trending or consolidating.
The Choppiness Index uses a scale of between 0 & 100. It also typically uses upper and lower bands at 61.8 & 38.2 respectively.
This indicator is plotted by first calculating the true range for each period & then adding the values of n-periods.
Second, it calculates the highest value & lowest value over n-periods and calculates their difference.
Third, it divides the sum of the true ranges & calculates the base-10 logarithm of this value.
Finally, it divides this value by the base-10 logarithm of n-periods and multiplies the results by 100.
Technical Analysis and Generating Signals
Choppiness Index is a directionless indicator meaning it doesn't determine in which direction the market is moving.
Its basic principle is that the more heavily the market is trending over the last number of n price periods the closer to zero the Choppiness Index indicator will be and the more heavier the market is consolidating that is moving sideways in a ranging or choppy manner, over the last n-periods the closer to 100 the Choppiness Index will be.
Indicator values of above 61.8 indicate that the market is ranging/ choppy (moving sideways and consolidating).
Higher values occur during/after a strong consolidation phase. Higher values could also be interpreted as a signal of a potential upcoming breakout after a significant consolidation has occurred.
Choppiness Index values of below 38.2 indicate that the market is trending.
Lower values occur during/after a strong trending phase. Lower values could also be interpreted as a signal of a potential upcoming consolidation & choppiness after a strong trend phase has occurred.
