Choppy Market Index Indicator

Choppy Market Index Indicator

Choppy Market Index Indicator For MT4 provides forex trading signals effectively in both trending and ranging markets.

The Choppy market index indicator for MT4 is an indicator that is capable of providing forex trading signals on both ranging and trending markets. The indicator widely known as CMI calculates the difference between the closing prices of the most recent bar with the bars of a predefined period. Then the value is divided by the difference between the highest high and lowest low during this period.

The salient feature of this indicator is that it provides separate trading rules for both trending and ranging markets. So, forex traders can buy and sell in both markets, this feature is not available with most of the technical indicators. Mostly, technical indicators provide forex trading signals only in either type of market and not both.

The indicator is simple to use and is suitable for both new and advanced forex traders. New traders can easily understand the trading rules and apply them with ease. On the other hand, advanced forex traders can use this indicator to formulate complex trading strategies and program auto trading strategies.

The indicator works well in all intraday price charts and daily, weekly, and monthly price charts. So, the indicator is suitable for all kinds of trading strategies. Additionally, forex traders can download the indicator for free and install it easily.

Choppy Market Index Indicator For MT4 Trading Signals

The above EURUSD H1 candlestick price chart shows the Choppy market index indicator for MT4 in action. The indicator plots the indicator line in red, green, and yellow colors, while the moving average or the signal line is in blue.

Range Trading Rules :
If the indicator line is red and the blue line is above 40 traders should enter a buy trade and exit the trade if the indicator line moves higher than 50. Similarly, if the indicator line is green and the blue line is above 40, then traders should enter the market with a sell position. And exit the position if the indicator line moves higher than 50. The indicator does not provide a target for profit booking.

Trend Trading Rules :
If the indicator line is green and the blue line is above 60, traders can enter a long position and exit the position if the indicator line moves below 50. Similarly, if the indicator line is red and the blue line is above 60, traders can place a sell trade. And exit if the indicator line moves below 50.

For best results, it is important to follow the trading rules mentioned above. Traders can apply this indicator in both bullish and bearish market conditions and buy and sell accordingly. However, it is recommended to practice the entry rules before trading in LIVE market conditions.

Conclusion
The CMI – Choppy market index indicator for MT4 is indeed an essential tool for forex trading. However, traders should note that it provides multiple signals which may be short-lived. So, forex traders should follow the trades and exit positions quickly.