Choppiness Index Indicator for ThinkorSwim

[BenTen]

@thealphabreed This indicator will only help you identify period of choppiness, it does not predict the direction.

 

[thealphabreed]

@thealphabreed This indicator will only help you identify period of choppiness, it does not predict the direction.

I am aware of that. But my timeframe question wasn't about this indicator.

 

[BenTen]

@thealphabreed You should be looking at multiple timeframes, especially the higher timeframe. The 5min is the smallest timeframe I would go to.

 

[thealphabreed]

@thealphabreed You should be looking at multiple timeframes, especially the higher timeframe. The 5min is the smallest timeframe I would go to.

I kind of agree with the 5min. Then why do the so-called popular trades focus so much on 1min scalping?

 

[BenTen]

@thealphabreed Everyone is different.

 

[thealphabreed]

@thealphabreed, Looking at Multiple Time Frames will confirm signals from your strategy. I don't do TTM squeezes but if you search the threads on the squeeze, you will find they extensively cover the use of MTFs.
Once you have confirmed your signal on the MTFs, you can use the one minute chart to time your entries and exits.

Can you direct me to the link? I cant find it

 

[Ginu09]

@thealphabreed You should be looking at multiple timeframes, especially the higher timeframe. The 5min is the smallest timeframe I would go to.

I use the 5min chart for trend and the 2min chart for entries. 2min and 5min timeframes need to have confluence. Otherwise, you don’t know if a move on a lower timeframe is with or against the larger trend.

 

[jan_angel]

@BenTen

study notes comment that this indicator can be used to identify breakout patterns as well. How can I do that?

thanks
Jan

 

[BenTen]

@jan_angel Take a look at this article https://www.investopedia.com/stock-...ations-poised-breakout-all-oxy-line-nuan.aspx

 

[technicallydreaming]

This is actually looking really good. Has anybody else tried it yet? I have tried using ADX in the past but too many good moves were missed, so happy to have this alt.

 

[MisterSK]

How do you use this indicator?

 

[technicallydreaming]

How do you use this indicator?

It's specfied in the code. Basically high number bad , no trade . Low number good, trade. Works long & short.

 

[MisterSK]

It's specfied in the code. Basically high number bad , no trade . Low number good, trade. Works long & short.

Thank you, super new to this.

 

[surferdude]

This is actually looking really good. Has anybody else tried it yet? I have tried using ADX in the past but too many good moves were missed, so happy to have this alt.

I use this indicator all the time and just like you had used the ADX to identify trends/ending trends and chop. I still use the ADX but beginning to use the Choppiness Index and other FE variations because it is quicker than the ADX and nowhere near as laggy as the ADX

 

[ShadowJack]

I know its kind of a silly change, but moved the consolidation range to an input so it is able to be changed from the settings

# Sideways Indicator
# Original Code developed by WalkingBallista
# Concept and Idea by BenTen at useThinkScript.com
# Identify choppy market. Can also be used to find consolidation/breakout patterns.
# Version 1.0 (read changelog in the forum)

input length = 14;
input averageType = AverageType.WILDERS;
input price = close;
input consolidation_range = 5;

def hiDiff = high - high[1];
def loDiff = low[1] - low;

def plusDM = if hiDiff > loDiff and hiDiff > 0 then hiDiff else 0;
def minusDM =  if loDiff > hiDiff and loDiff > 0 then loDiff else 0;

def ATR = MovingAverage(averageType, TrueRange(high, close, low), length);
def "DI+" = 100 * MovingAverage(averageType, plusDM, length) / ATR;
def "DI-" = 100 * MovingAverage(averageType, minusDM, length) / ATR;

def range = AbsValue(AbsValue("DI+")-AbsValue("DI-"));

AssignPriceColor(if range < consolidation_range then Color.Yellow else Color.Current);