Choppiness index
Whether the market is trending (low) or moving sideways (high).
Formula
CHOP = 100 × log₁₀(Σ True range ÷ (Highest high − Lowest low)) ÷ log₁₀(N)
How to read it
Above 61.8 the market is choppy — it paced its range many times over; below 38.2 it is trending — it went more or less straight across.
How to use it
Choose between trend-following and range-trading tactics.
Limitations
Says nothing about direction.
In Kereon
Charts · Superchart. Default 14, on a 0–100 scale with lines at 38.2 and 61.8.
Also called: choppiness, chop, trendiness.