What it does
The Choppiness Index quantifies whether the market is trending or ranging on a 0 to 100 scale, with no directional information. It compares the sum of true ranges over the lookback (default 14 bars) to the total high-low range of that window, using a log-ratio scaled to 100: when bars overlap heavily the sum dwarfs the net range and the index is high; when price travels efficiently in one direction it is low. High readings mean chop, low readings mean trend.
How to add it
Click Indicators (ƒx) in the header.
Search “Choppiness Index” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Use the Fibonacci-derived thresholds: above 61.8 indicates a choppy, range-bound market; below 38.2 indicates a strong trend in force.
- Choose the playbook, not the trade: high readings favor mean-reversion tactics and fading extremes, low readings favor breakout and trend-following tactics.
- Watch transitions: the index falling from above 61.8 often marks a range resolving into a fresh trend worth joining early.
- Pair it with directional tools (moving averages, ADX's DI lines) since it never says which way the trend points.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Period | number | 14 | 1–200 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| CHOP(14) | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| Upper Band | 61.8 |
| Lower Band | 38.2 |
Level values, colors and line styles are editable in settings.
Tips
- Reference levels (where the study has them) are editable — tune them to the instrument you're trading.
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
Watch out for
- It is a lagging, descriptive measure: extended chop readings often appear just before big breakouts, and low readings late in a trend can precede exhaustion.
- It gives no direction and no entry levels, so it is strictly a regime filter, never a signal generator.