Choppiness Index

The Choppiness Index (“chop”) measures, on a scale of 0 to 100, how much price is going in circles. A high reading signals a compressed, directionless market — but also a spring being compressed: the longer the chop stays loaded, the more powerful the move that follows can be. A low reading indicates a trend already underway. It doesn’t tell you the direction of the move, only its maturity — combine it with price action.