Topic: "Choppiness Index" Issues
So they way I understand it is, that when the choppiness index shows lower numbers this tells the trader the market is trending and when it reaches higher numbers the market has entered into a period of consolidation. Well when I look at the overview of my strategy to open long trades it says "When choppiness Index is lower than the level line" and the rest of the conditions are met then it opens the trade, which is great. But, when I look at the logic to open sell trades is says "When choppiness Index is above the level line" and the rest of the conditions are met it opens a short trade (or in most cases with this strategy, close open position and reverse). So it's only opening short positions during consolidation phases of the market? Or is the logic wording inside FSB wrong and the indicator is working correctly? I'm already maxed out on the number of opening logic conditions so it's not like i can put 2 separate instances of the choppiness index and add "Only Short" to the one and "Only Long" to the other. The way I understand it is, this index is much similar to ADX in which if you select something like if "ADX is above the level line" open long trade but the same goes for short trades because the ADX doesn't tell you the direction of the trend, only the strength of said trend.