The choppy market index indicator is used to know the difference between the high level price bars, low level price bars with the close price bars.
Choppy Market index indicator
This is such a simple indicator in use. Shortly this indicator is known as CMI indicator. This indicator tells the way of trading that is this trading is directional or a trading that has no trading direction.
This is a forex trading strategy indicator that is available free for traders. This indicator can also be used with any currency pair that forex market provide to its traders and brokers.
Rules for choppy market index indicator
There are two rules that are followed by the traders when they work with this indicator.
Range rule and market trend rule.
When both the factors are reached or cross the half levels like fifty percent levels then they leave the market trading sites and then it is decided that the either the market is in range or in a trend.
The choppy market index indicator multiply the result of the range or trend with the factor points from 0 to 100. Through the result the trader get knowledge about the market state that is this directional or direction less.