Trends/Trend strength and direction

Choppiness index

A 0 to 100 number for how choppy price has been, based on the path length versus the range.

Trend strength and directionBest on 3M, 6M, 1YAlso called CHOP

Illustration of the choppiness index shape. It is a sketch, not real price data.

What it shows

E.W. Dreiss's choppiness index compares the sum of true ranges over 14 bars with the overall high-low range of those bars. If price moved in a straight line, the sum of ranges is not much bigger than the overall range, and the index is low. If price zigzagged, it is high.

Values above 61.8 are called choppy and below 38.2 trending.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Sum the true range over 14 bars.
Find the highest high minus lowest low over those 14 bars.
CHOP = 100 × log10(sum ÷ range) ÷ log10(14).
Plot with lines at 38.2 and 61.8.

Starting values: Length 14; Lines 38.2 / 61.8. These are proposed and will be tuned on real price data before launch.

How to read it

The panel shows CHOP.
Above 61.8: choppy price.
Below 38.2: trending price.

Status labels you may see

Label	What it means
Choppy	CHOP above 61.8.
Middle	Between.
Trending	CHOP below 38.2.

What cancels it

Nothing cancels it.

What traders check next

ADX.
Duration.
Price trend.

Limits

Does not say direction.
Lines are Fibonacci-based conventions.
Lags.

Try it in forecastviz

Open any ticker and choose Trend strength and direction → Choppiness index in the left menu.
Switch between 3M, 6M, 1Y to see how the picture changes.
Compare with Average directional index and Efficiency ratio on the same chart.

Open on a ticker

Questions

Why 61.8?

It is a Fibonacci ratio, chosen by convention.

Is it like ADX?

Both measure trendiness differently.