TRO_MM_CMI CHOPPY MARKET INDEX

[TheRumpledOne]

TRO_MM_CMI CHOPPY MARKET INDEX



TRO_MM_CMI is a multimeter that displays the CHOPPY MARKET INDEX for all the chart periods.

There was a post HERE that reminded me.

FREE MT4 version TRO_MM_CMI including SOURCE CODE, attached.


PLEASE DO NOT POST MY CODE ON OTHER FORUMS.

[noone22]

Before calculating CMI,
it's good to have a definition of "choppy market" first.

And this seems to be very subjective,
at least I cannot give smart and short one.
Is it based on Open or Close or Middle or all?
Is it taking candle weaks into account or not?
What is choppines criteria and what are choppy/trend values?
Let's say, in H1 chart above CMI is 48 - is it choppy or trendy
or what?

[koolbreeze]

Noone,
Your question is sort of puzzling to me. If you're standing in the rain do you really need a good definition to know when you are wet. Are you joking with us. You?ve been trading for a while now and have seen choppy markets frequently.
When you are viewing a market with prices pushing up and down within a defined range you are in a choppy market. Until the price breaks out of this range in either direction the odds of a successful trade are limited. So it?s better to avoid chop. Of course it?s a bit subjective. Instructing a robot to identify a choppy market would be a tough job but thankfully we don?t have to.

[noone22]

OK,
I've checked the code and have clarified everything:
if CMI > 80 - it will be in green -
means TRENDY market
(for both Up and Down trend -
this was the reason of my initial confusion)

if CMI < 20 - it will be in red -
means CHOPPY market.

what happens in between -
will be in orange = FLAT.

When I'm standing in the rain, I really want to know
how wet I'm (or how strong rain is),
as soon as I'm in pocession of rain strength indicator.

And I do need a definition, because I'm a scientist.

Definition of a choppy market:
Market with prices pushing up and down considerably
or within a narrow defined range
but with no resulting overall price movement in either direction.

Still not absolutely good (what is narrow??),
but better than nothing.

[TheRumpledOne]

I just coded the CMI for the fun of it.

If it works for you then use it.

If it does NOT work for you then throw it away or change it so it does work for you. That's what I do. Chances are you'll never see me post it on one of my charts.

[noone22]

Sure, I'll leet it a try - want to find out, what is the real
CMI value for real choppy market.
It's good to know (from indicator), that market is choppy.

TRO, thank you for codding.

TRO, one question:

From your broad experience, could you say,
that achieving 5-7 pips gross profit in choppy market
is possible or choppy market must be avoided?

[TheRumpledOne]

I don't care what you call the market, choppy, trendy, bull, bear, consolidating, etc.... I just trade what I see.

Of course, some hours are better than others for some pairs.

Remember, the CMI is really a "SQUIGGLY".

[TheRumpledOne]

http://fxprosystems.com/choppy-market-index/

Rules Strategy Choppy Market Index

Trading in volatile/choppy market:

Buy when the moving average (blue line) indicator below 40 CMI and CMI red line itself.
Sell when the moving average (blue line) indicator below 40 CMI and CMI of the green line.
Exit the position when CMI exceeds 50.

Trading in a trending market:

Buy when the blue moving average above 60 and the line color CMI - green.
Sell when the blue moving average above 60 and the line color CMI - red.
Exit the position when CMI falls below 50.


Range strategy rules:

1. Enter a long when the 10-bar SMA of the 60-bar CMI
is below 40 and the difference between the current
bar’s close and the close 20 bars ago is negative.

2. Enter a 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 close and the
close 20 bars ago is positive.

3. Exit trades when the CMI moves
above 50.

Trend strategy rules:

1. Enter a long when the 10-bar SMA
of the 60-bar CMI is above 60 and
the difference between the current
bar’s close and the close 20 bars
ago is positive.

2. Enter a short when the 10-bar
SMA of the 60-bar CMI is above
60 and the difference between the
current bar’s close and the close 20
bars ago is negative.

3. Exit trades when the CMI moves
below 50.

*/

I made a few mods to the CMI indicator and updated the TRO_MM_CMI.

It's still a SQUIGGLY...LOL!!

[THEDOMINICANREPUBLIC]

http://fxprosystems.com/choppy-market-index/

Rules Strategy Choppy Market Index

Trading in volatile/choppy market:

Buy when the moving average (blue line) indicator below 40 CMI and CMI red line itself.
Sell when the moving average (blue line) indicator below 40 CMI and CMI of the green line.
Exit the position when CMI exceeds 50.

Trading in a trending market:

Buy when the blue moving average above 60 and the line color CMI - green.
Sell when the blue moving average above 60 and the line color CMI - red.
Exit the position when CMI falls below 50.


Range strategy rules:

1. Enter a long when the 10-bar SMA of the 60-bar CMI
is below 40 and the difference between the current
bar’s close and the close 20 bars ago is negative.

2. Enter a 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 close and the
close 20 bars ago is positive.

3. Exit trades when the CMI moves
above 50.

Trend strategy rules:

1. Enter a long when the 10-bar SMA
of the 60-bar CMI is above 60 and
the difference between the current
bar’s close and the close 20 bars
ago is positive.

2. Enter a short when the 10-bar
SMA of the 60-bar CMI is above
60 and the difference between the
current bar’s close and the close 20
bars ago is negative.

3. Exit trades when the CMI moves
below 50.

*/

I made a few mods to the CMI indicator and updated the TRO_MM_CMI.

It's still a SQUIGGLY...LOL!!

i just fond this rules, and i think that the chart is showing a buy singnal.Right?

[THEDOMINICANREPUBLIC]

im long based in this signals confirmed by by others system.
When I got a good signal confirmed, I jump in with big lots and exit using the 1M