The second part of the post is clear but the first one is very obscure, at least to me. How do you mathematically accumulate momentum from midnight ?
When this undicator is consistently wrong. Using your intuition to decide on entries also works, because in chop what looks right is always wrong.
The market is always both ranging and trending... It's just that higher trend speeds suppress the size of dips/bounces so they are not very noticeable.
you cant predict when it range or trend, chop in one time frame is trend on other time frame. try to find some red/green line like this guy instead http://www.youtube.com/watch?v=cAgHZ4ez74Q&feature=player_embedded
For me, range is when you have enough room to make a profitable trade. Pure chop would be sideways movement where price is just going up down by a few ticks.
Good question that deserves the correct answer. You can not predict range days or chop days for highly liquidity instruments. You're better off tossing a coin and letting the coin tell you what type of day it will be
It looks like you're looking to predict rather than detect. Just do a google search on "trend day" and you'll find posts like this one: http://traderfeed.blogspot.com/2009/01/six-ways-to-identify-trend-day-in-stock.html