Choppiness Index

Compares the ground price actually covered (the sum of true ranges) with the span of the window on a logarithmic scale, bounded between 0 and 100. Readings above 61.8 mark a consolidating, choppy market where trend-following entries are prone to whipsaws; readings below 38.2 mark a strong trend. The reading is direction-agnostic — a crash and a rally both read as trending — so the direction must come from a companion trend indicator.

Live Demo

Pick a market regime to see how Choppiness Index(14) reacts:

Usage

import {CHOP} from 'trading-signals';
 
// CHOP yields results once 15 inputs have been added
const chop = new CHOP(14);