How to Trade with the Choppiness Index The Choppiness Index is a valuable tool in the world of trading, particularly for experienced traders involved in analysing market trends and making informed trading decisions. Developed by Australian commodity trader E.W. Dreiss, this indicator is designed to measure price volatility or directionless behaviour. The...
As we all know, cryptos are one of the most volatile assets out there (e.g. Einsteinium). To avoid trading against the general trend, or even trading when I shouldn't (overtrading), I use the Choppiness Indicator. The Choppiness Indicator is a directionless indicator, so it doesn't go up or down regarding price action. Nor it predicts future movements. You read it...
A simple ema cross over strategy (7/25) and choppiness index to buy on the 4hr timeframe. if ema 7 is above ema25 AND candle before was below AND CHOP < 45 AND volume > 10 units AND candle open > 130 units (units will be in your base pair) then BUY if ema 7 is below ema25 AND candle before was above OR Profit = 15% OR Profit = -10 then SELL