Choppiness Index: how much ground the bar-by-bar travel covers compared with
the net range it produced. A market that retraces everything spends the full
length bars of true range inside one range and reads near 100; a trend
covers the same range in a fraction of the travel and reads low.
the reference writes the numerator as sum(atr(1), length). atr(1) is
rma(tr, 1), which is the true range itself, so this is a plain rolling sum
of true range, including bar 0, where the reference true range is high - low.
Choppiness Index: how much ground the bar-by-bar travel covers compared with the net range it produced. A market that retraces everything spends the full
lengthbars of true range inside one range and reads near 100; a trend covers the same range in a fraction of the travel and reads low.the reference writes the numerator as
sum(atr(1), length).atr(1)isrma(tr, 1), which is the true range itself, so this is a plain rolling sum of true range, including bar 0, where the reference true range ishigh - low.