Components - Choppiness Line
REDline has two primary components - the REDline and the Choppiness Line.
Choppiness Line
The Choppy Market Filter - indicates whether the market is choppy or trending. The background colour indicates the state of the market: green is trending, red is choppy and yellow is dicretionary. Use these states to influence your trade entry.
The background colour of the indicator references the Choppiness Line's location. Above zero-line (Green) = trending, Close to zero-line (Yellow) = transition and Below zero-line (Red) = Chop. Trade signals will not print unless the Choppiness Line is above zero and the background is green.
The Choppiness line aims to increase trade entry signals so that the user is not entering trades during Choppy market periods. Successful trades CAN be made using REDline when the Choppiness line is red or yellow however these entries are typically riskier. When the Choppiness line background is Yellow or Red, the indicators is suggesting that there are no trends to identify in the market and users should avoid trading.
Use this indicator at your own risk.
Last updated