How Do You Use Choppiness Index MT4 Technical Indicator?
Choppiness Index Indicator Analysis Sell Signals
Created by E.W. Dreiss
Choppiness Index indicator was designed to be an easy & practical indicator to help traders determine if the fx prices are trending or consolidating.
Choppiness Index indicator is similar to ADX indicator which is also designed to evaluate the strength or momentum of a forex trend & determine if the forex market is trending or consolidating.
How to Add MT4 Choppiness Index Indicator in MT4 Charts
The Choppiness Index indicator uses a scale of between 0 and 100. Choppiness Index indicator also typically uses upper band & lower band at 61.8 and 38.2 levels respectively.
Choppiness Index indicator is drawn by first calculating the true range for each forex price period & then adding the values of n forex price periods.
Second, Choppiness Index indicator calculates the highest value & lowest value over n forex price periods & calculates their difference.
Third, Choppiness Index indicator divides the sum of the true ranges & calculates the base-10 logarithm of this value.
Finally, Choppiness Index indicator divides this value by base-10 logarithm of n fx price periods & multiplies the results by 100.
How to Generate Buy & Sell Signals
Choppiness Index indicator is a directionless forex indicator meaning it does't determine in which direction the forex trend is moving.
Choppiness Index indicator basic principle is that the more heavily the forex price is trending over the last number of n forex price periods the closer to zero the Choppiness Index indicator value will be & the more heavily the forex price is consolidating that's forex trend that's moving sideways in a range or choppy manner over the last n forex price periods the closer to 100 the Choppiness Index indicator value will be.
Choppiness Index indicator values of above 61.8 signals that the trend is ranging & choppy - moving sideways or consolidating.
Higher Choppiness Index indicator values occur during or after a strong consolidation phase. Higher Choppiness Index indicator values could also be interpreted as a forex trading signal of a potential upcoming forex price breakout after a significant forex price consolidation move has occurred.
Choppiness Index indicator values of below 38.2 signals that the forex market is trending.
Lower Choppiness Index indicator values occur during or after a strong forex trend. Lower Choppiness Index indicator values could also be interpreted as a forex trading signal of a potential upcoming forex price consolidation & price choppiness after a strong forex trend phase has occurred.
How to Add MT4 Choppiness Index Indicator in MT4 Charts
Step 1: Open MT4 Software Navigator Panel
Open MetaTrader 4 Navigator panel as shown below: Go to 'View' menu (click), then choose 'Navigator' panel (click), or From Standard Tool-Bar click 'Navigator' button or press keyboard MetaTrader 4 short-cut keys 'Ctrl+N'
On MetaTrader 4 Navigator window, choose "Indicators", by DoubleClick
How Do You Use MT4 Choppiness Index Indicator?
How to Add Choppiness Index MT4 Indicator
Expand the menu by clicking the expand button (+) or double click the 'indicators' menu, after this the button will appear as (-) and it will then display a list of MT4 indicators as shown below - choose the Choppiness Index indicator from this list of MT4 indicators so that you can add the Choppiness Index MT4 indicator on the MT4 chart.
How Do You Use MT4 Choppiness Index Indicator?
How Install and Add Custom Choppiness Index Indicator in MT4?
If the MT4 indicator that you want to add on the MT4 charts is a custom MetaTrader 4 indicator - for example if the Choppiness Index indicator that you want to add is a custom MT4 indicator you will need to first add this custom Choppiness Index MT4 indicator on the MT4 platform and then compile this custom Choppiness Index indicator so that this newly added Choppiness Index MT4 custom indicator appears on the custom indicators list in the MT4.
To learn how to add Choppiness Index indicators on MT4 software - how do you add Choppiness Index indicator window to MT4 platform? - how do you add Choppiness Index forex custom indicator on MetaTrader 4 platform? - How to add a custom Choppiness Index custom forex indicator on MT4.
How Do You Use MT4 Choppiness Index Indicator?
