It is based on the Choppiness Index indicator. It can show you when the market is in range. If the lines are below the lower band, it can be a strong trend, if it is inside the 2 bands, it is considered to be a choppy market, and if it is crossed down the upper band, it can be a developing trend.
This indicator does not show you the trend direction! This may be used as a confirmation indicator.

The improvements this indicator provides over the original:
  • It uses ATR instead of just TR (if ATR length is 1, it is the original TR)
  • It uses my ATRWO (ATR Without Outliers) indicator inside, which can remove extreme highs and lows from calculation. You can tune this by the "ATRWO STDev Mult" parameter. Higher value means more outliers are allowed.
  • It has 2 lines, one uses ATR(WO) (the blue one), which can be similar to the original Choppiness Index , the other uses standard deviation (the teal one).

The 2 lines can be used together, or you can hide one of them.

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