Streak Choppiness Index
Streak Choppiness Index
OVERVIEW
Streak Choppiness Index measures how often candle color flips (green to red or red to green) over a rolling window. Frequent flips mean the market is choppy and mean-reverting. Long unbroken runs of one color mean it is trending. The indicator classifies each bar into a regime (Choppy, Neutral or Trendy) and flags "fade setups": a same-color streak reaching a chosen length inside a choppy regime. It works on any symbol and any timeframe.
THEORY
If candle colors were random coin flips, each candle would have a 50% chance of differing from the previous one. A flip rate near 50 is therefore the "random" baseline:
• Above 50: colors alternate more often than chance. Streaks are short and tend to reverse (anti-persistent, mean-reverting behavior).
• Below 50: colors repeat more often than chance. Streaks tend to extend (persistent, trending behavior).
This is the same idea as a runs test: counting color changes in a sequence reveals whether it is alternating, random or clustering. Average streak length gives the same information in candle units. Random data averages about 2 candles per streak; shorter means chop, longer means trend.
HOW IT WORKS
1. Color: a candle is green when close ≥ open, otherwise red.
2. Flip: a flip is counted when a candle's color differs from the previous candle's.
3. Chop index: flips in the window / window length × 100, smoothed with an EMA.
100 = color flips every candle (pure chop)
0 = one unbroken streak (pure trend)
4. Baseline: the long-run average of the raw chop index (SMA), used to judge whether current choppiness is high or low for this market.
5. Average streak: window / (flips + 1), the approximate mean streak length in candles.
6. Live streak: the current run of same-color candles, counted back up to 31 candles.
7. Regime:
• Choppy – chop index ≥ Choppy threshold
• Trendy – chop index ≤ Trendy threshold
• Neutral – in between
8. Fade setup: Choppy regime AND live streak ≥ Max streak length.
PLOTS
- Chop index line – green when Choppy, yellow when Neutral, red when Trendy.
- Baseline – gray long-run average.
- Threshold lines – Choppy, Trendy and a 50 midline.
- Background – light green in Choppy, light red in Trendy, stronger green on a fade setup.
- Table – regime, chop index, value vs baseline, average streak, live streak (color × length), reversion status (ON in Choppy, OFF otherwise) and fade setup.
HOW TO USE
- Choppy regime: streaks are short and reverse often, so mean-reversion approaches (fading the current streak) have better conditions.
- Trendy regime: streaks extend, so fading tends to fail. Stand aside or trade with the direction.
- Fade setup: the current streak has reached your maximum expected length while the market is choppy. This is a candidate point for a reversal entry, not a guaranteed one.
- Use the baseline to compare current choppiness with what is normal for the symbol and timeframe.
SETTINGS
- Rolling window – number of candles used to count flips (default 5). Small windows react fast; larger windows give a steadier regime.
- Smoothing – EMA length on the chop index.
- Baseline window – length of the long-run average.
- Choppy / Trendy thresholds – regime boundaries.
- Max streak length – live streak length that triggers a fade setup in a choppy regime.
- Table, table position and regime background toggles.
NOTES
Candles with close equal to open are counted as green. With a small window the index moves in large steps (for example 0, 20, 40… for a window of 5); smoothing softens this.
This script is for analysis and education only and is not financial advice.
OVERVIEW
Streak Choppiness Index measures how often candle color flips (green to red or red to green) over a rolling window. Frequent flips mean the market is choppy and mean-reverting. Long unbroken runs of one color mean it is trending. The indicator classifies each bar into a regime (Choppy, Neutral or Trendy) and flags "fade setups": a same-color streak reaching a chosen length inside a choppy regime. It works on any symbol and any timeframe.
THEORY
If candle colors were random coin flips, each candle would have a 50% chance of differing from the previous one. A flip rate near 50 is therefore the "random" baseline:
• Above 50: colors alternate more often than chance. Streaks are short and tend to reverse (anti-persistent, mean-reverting behavior).
• Below 50: colors repeat more often than chance. Streaks tend to extend (persistent, trending behavior).
This is the same idea as a runs test: counting color changes in a sequence reveals whether it is alternating, random or clustering. Average streak length gives the same information in candle units. Random data averages about 2 candles per streak; shorter means chop, longer means trend.
HOW IT WORKS
1. Color: a candle is green when close ≥ open, otherwise red.
2. Flip: a flip is counted when a candle's color differs from the previous candle's.
3. Chop index: flips in the window / window length × 100, smoothed with an EMA.
100 = color flips every candle (pure chop)
0 = one unbroken streak (pure trend)
4. Baseline: the long-run average of the raw chop index (SMA), used to judge whether current choppiness is high or low for this market.
5. Average streak: window / (flips + 1), the approximate mean streak length in candles.
6. Live streak: the current run of same-color candles, counted back up to 31 candles.
7. Regime:
• Choppy – chop index ≥ Choppy threshold
• Trendy – chop index ≤ Trendy threshold
• Neutral – in between
8. Fade setup: Choppy regime AND live streak ≥ Max streak length.
PLOTS
- Chop index line – green when Choppy, yellow when Neutral, red when Trendy.
- Baseline – gray long-run average.
- Threshold lines – Choppy, Trendy and a 50 midline.
- Background – light green in Choppy, light red in Trendy, stronger green on a fade setup.
- Table – regime, chop index, value vs baseline, average streak, live streak (color × length), reversion status (ON in Choppy, OFF otherwise) and fade setup.
HOW TO USE
- Choppy regime: streaks are short and reverse often, so mean-reversion approaches (fading the current streak) have better conditions.
- Trendy regime: streaks extend, so fading tends to fail. Stand aside or trade with the direction.
- Fade setup: the current streak has reached your maximum expected length while the market is choppy. This is a candidate point for a reversal entry, not a guaranteed one.
- Use the baseline to compare current choppiness with what is normal for the symbol and timeframe.
SETTINGS
- Rolling window – number of candles used to count flips (default 5). Small windows react fast; larger windows give a steadier regime.
- Smoothing – EMA length on the chop index.
- Baseline window – length of the long-run average.
- Choppy / Trendy thresholds – regime boundaries.
- Max streak length – live streak length that triggers a fade setup in a choppy regime.
- Table, table position and regime background toggles.
NOTES
Candles with close equal to open are counted as green. With a small window the index moves in large steps (for example 0, 20, 40… for a window of 5); smoothing softens this.
This script is for analysis and education only and is not financial advice.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.