Choppiness Index (CI) – FX Replay Guide
In FX Replay, the Choppiness Index helps you dynamically filter whether the market is in trend mode or stuck in consolidation, giving you an edge in strategy selection, trade timing, and avoiding false breakouts during low-quality setups.
How to Use It in FX Replay
Add the Indicator:
- Go to Indicators → Search “Choppiness Index” or “CI”.
- Apply with a default period (often 14), or adjust based on your session duration or asset volatility.
Signal Interpretation:
- CI < 38.2: Strong trending conditions → favor breakouts, PO3 expansions, or SMMA trend entries.
- CI > 61.8: Choppy, sideways conditions → consider range trades, fade setups, or VWAP mean reversions.
- CI falling: Trend developing.
- CI rising: Trend stalling or market moving into consolidation.
Trade Setup Integration:
- Trend Setup:
- CI < 40 → pair with volume expansion, fractal breaks, or HTF PO3 direction.
- Range Setup:
- CI > 60 → pair with support/resistance tags, liquidity sweeps, or RSI divergence.
Session-Specific Testing:
- Monitor how CI behaves at:
- London/NY opens → often transition from high CI (chop) to low CI (expansion).
- Zeussy AMD 30/90 zones → look for CI shift to spot high-probability windows.
Backtesting Tags:
- “CI < 40 + breakout at VWAP”
- “CI > 65 + range scalp at PO3 midpoint”
- “CI falling + TEMA trend entry on NY AM”
Pro Tip
In FX Replay, CI is your strategy filter switch:
- Low CI = play the trend.
- High CI = fade the range.
- Avoid initiating new trades when CI is rising near 50–60 without confirmation from volume or structure.
Best when used with:
- Alligator or SMMA for trend strength.
- Fractals or FVG zones for timing.
- VWAP/PO3/Zeussy sessions to pinpoint structure shifts inside CI transitions.