OPEN-SOURCE SCRIPT
Choppiness ZONE Overlay
Purpose
This script overlays choppiness zones directly onto the price chart to help traders identify whether the market is trending or ranging. It is designed to filter out low-probability trades during high choppiness conditions.
How It Works
Features
Tip
Use this tool as a volatility or trend filter. Combine it with momentum or trend-following indicators to improve trade selection.
This script overlays choppiness zones directly onto the price chart to help traders identify whether the market is trending or ranging. It is designed to filter out low-probability trades during high choppiness conditions.
How It Works
- Calculates the Choppiness Index over a user-defined period using ATR and price range.
- Divides choppiness into four zones:
30 to 40: Low choppiness, possible trend initiation, shown in yellow.
40 to 50: Moderate choppiness, transition zone, shown in orange.
50 to 60: High choppiness, weakening momentum, shown in red.
60 and above: Extreme choppiness, avoid trading, shown in purple. - Highlights each zone with customizable color fills between the high and low of the selected range.
- Triggers a real-time alert when choppiness exceeds 60.
Features
- Customizable choppiness zones and color settings.
- Real-time alert when market becomes extremely choppy (choppiness ≥ 60).
- Visual zone overlay on the price chart.
- Compatible with all timeframes.
- Lightweight and responsive for scalping, intraday, or swing trading.
Tip
Use this tool as a volatility or trend filter. Combine it with momentum or trend-following indicators to improve trade selection.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.