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Choppy Market Index Metatrader 5 Forex Indicator

    The Choppy Market Index Metatrader 5 forex indicator was first introduced by Daniel Fernandez in August 2011 Trading Strategies magazine article “Tackling trending and ranging markets with CMI.”

    The Choppy Market Index is quite an easy technical tool that measures whether the market is in a choppy (non-directional) state or a trending (directional) state.

    Forex traders can deploy this indicator to calculate the difference between the most recent bar’s close and the close n previous bars and divide this value by the difference between the highest high and lowest low over the n stated bars.

    The resultant yield is multiplied by 100 to yield a normalized value that is placed between 0 and 100.

    CMI = ((ABS(C[0]-C[n]))/(H[n]-L[n]))*100

    There are two lines within the Choppy Market Index forex indicator, the 60-bar CMI (dodger blue) and the 10-bar SMA (crimson).

    Free Download

    Download the “Choppy market index.ex5” MT5 indicator

    Example Chart

    The USD/CHF M30 chart below displays the Choppy Market Index Metatrader 5 forex indicator in action.

    Basic Trading Signals

    Buy Signal: Go long when the 10-bar SMA of the 60-bar CMI is below the 40 level and the difference between the current bar’s close and the previous 20 bars close is negative.

    Sell Signal: Go short when the 10-bar SMA of the 60-bar CMI is below 40 and the difference between the current bar’s close and the previous 20 bars close is positive.

    Exit buy trade: Close all buy orders when the 60-bar CMI (dodger blue) moves above the 50 level.

    Exit sell trade: Close all sell orders when the 60-bar CMI (dodger blue) moves above the 50 level.

    Tips: The Choppy Market Index MT5 forex indicator is suitable for range bound trading, as such scalpers and day traders can take advantage of this amazing feature.

    Download

    Download the “Choppy market index.ex5” Metatrader 5 indicator

    MT5 Indicator Characteristics

    Currency pairs: Any

    Platform: Metatrader 5

    Type: chart window indicator

    Customization options: Variable (Choppiness index period, Signal period, Signal method, Level 1, Level 2, level 3), Colors, width & Style.

    Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month

    Type: oscillator

    Installation

    Copy and paste the Choppy market index.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.

    You can access this folder from the top menu as follows:

    File > Open Data Folder > MQL5 > Indicators (paste here)

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