# What Happens in Indices Trading After Choppiness Index Bullish Crossover Indices Trading Signal

Choppiness Index Bullish Crossover Signal is a signal that shows the stock indexes price is closing higher than it opened. Once there is a bullish Choppiness Index crossover signal the indices prices on the stock indices chart are expected to keep move in a bullish upward indices trend - this means that the indices prices are expected to keep closing higher.

The Choppiness Index bullish crossover signals - The average stock indexes price on a stock indices chart will keep closing higher than it opened as long as the Choppiness Index bullish crossover signal remains bullish.

After Choppiness Index Bullish Crossover Signal - traders should open buy stock indexes trades as this is a bullish signal.

If the Choppiness Index signals crosses below the Choppiness Index bullish crossover mark - then this shows that indices prices are no longer closing higher than they opened and the bullish momentum has reduced and traders should close their open buy stock indexes trades if they had opened trades based on this Choppiness Index Bullish Crossover Signal.

## Choppiness Index Bullish Crossover Indices Trading Signal

Choppiness Index was designed to be an easy but practical indicator to help Indices traders to determine if the stock indices prices are trending or consolidating.

This Indicator is similar to ADX which is also designed to evaluate the strength or momentum of a indices trend and determine if the stock indexes trading market is trending or consolidating.

The Choppiness Index uses a scale of between 0 and 100. It also typically uses upper and lower bands at 61.8 and 38.2 respectively.

This indicator is drawn by first calculating the true range for each period and then adding the values of n-periods.

Second, it calculates the highest value and lowest value over n-periods and calculates their difference.

Third, it divides the sum of the true ranges and calculates the base-10 logarithm of this value.

Finally, it divides this value by the base-10 logarithm of n-periods and multiplies the results by 100.

## Indices Technical Analysis and Generating Indices Trading Signals

Choppiness Index is a directionless indicator meaning it does not determine in which direction the Indices Trading market is moving.

Its basic principle is that the more heavily the stock indexes trading market is trending over the last number of n-periods the closer to zero the Choppiness Index will be and the more heavily the stock indexes trading market is consolidating that is moving sideways in a ranging or chopping manner, over the last n-periods the closer to 100 the Choppiness Index will be.

Indicator values of above 61.8 indicate that the stock indexes trading market is ranging/ choppy (moving sideways and consolidating).

Higher values occur during/after a strong consolidation phase. Higher values could also be interpreted as a signal of a potential upcoming breakout after a significant consolidation has occurred.

Choppiness Index values of below 38.2 indicate that the stock indexes trading market is trending.

Lower values occur during/after a strong trending phase. Lower values could also be interpreted as a signal of a potential upcoming consolidation and choppiness after a strong indices trend phase has occurred.