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Choppiness index

Is the market trending or going nowhere? Scale 0 to 100.

Above about 60 the market is choppy (the path is long, the distance short); below about 40 it is trending.

It says nothing about direction. It is a filter for whether your kind of strategy fits the market right now.

In TradeXtool

Gate: Choppiness index(14) is below 50, so you only trade when there is a trend.

Watch out

It looks back. A quiet market can start trending the very next candle.

No indicator predicts the market on its own. Build the rule, then test it on years of history with fees included. Try TradeXtool free for 14 days.