# Choppiness Index Strategy AI Agent Connect

> Detect market regimes and generate deterministic trading signals using the Choppiness Index.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_lkWUbM9up4jGJXMmiGXqJzow6DAgksB0fzGUNEY0/ai-agent-connect
- **Tags:** trading, choppiness-index, market-regime, technical-analysis, algorithmic-trading

## Description

This MCP server provides a deterministic engine for market regime detection and trading signal generation. By analyzing price action through the Choppiness Index (CHOP), it classifies the market into trending, choppy, or transition states. Use `analyze_market_regime` to identify the current state, `generate_trading_signals` to receive specific BUY, SELL, or HOLD instructions based on regime-specific logic, and `query_market_statistics` to retrieve volatility and trend strength metrics. It is designed to connect AI agents to precise market state data for automated decision-making.

## Tools

### analyze_market_regime
Determines the current market state and its characteristics based on price action and the Choppiness Index

### query_market_statistics
Retrieves historical trend strength and volatility context for a specific window

### generate_trading_signals
Evaluates price action against the identified regime to produce specific entry and exit instructions

## Prompt Examples

**Prompt:** 
```
What is the current market regime based on these prices?
```

**Response:** 
```
The market is currently in a trending regime with a CHOP value of 32.5 and a regime duration of 12 bars.
```

**Prompt:** 
```
Should I buy or sell right now given the current trend and ADX?
```

**Response:** 
```
BUY at 150.25, with a stop-loss at 148.50 and a take-profit at 155.00.
```

**Prompt:** 
```
Analyze the volatility for the last 20 bars.
```

**Response:** 
```
The average volatility is 1.45, and the price range for this window is 12.30.
```

## Frequently Asked Questions

**How does the strategy handle different market states?**
The strategy uses `analyze_market_regime` to determine if the market is trending, choppy, or in transition. In a trending regime, it looks for pullbacks to the 20-day MA. In a choppy regime, it identifies entries at support and resistance levels.

**What is the purpose of the ADX value?**
The ADX value is used during trending regimes to confirm trend strength. A signal is only generated if the ADX is greater than 25, ensuring the trend is strong enough to justify the entry.

**Can I get volatility data?**
Yes, you can use the `query_market_statistics` tool to retrieve average volatility (ATR), price range, and a normalized trend strength index for a specific lookback window.