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Sideways Market Identifier (FinnoVent)
The Sideways Market Identifier (SMI Indicator) aims to identify when the market is trading in a sideways pattern. This is particularly useful for traders who specialize in range-bound strategies or those looking to avoid trading in choppy market conditions. The indicator changes the background and the color of the candles to grey when the conditions for a sideways market are met.
How It Works
The SMI Indicator combines three popular trading metrics: Bollinger Bands, the Average Directional Index (ADX), and the Relative Strength Index (RSI):
Bollinger Bands: Checks if the close price is within a certain range of the middle Bollinger Band. Specifically, it checks if the close price is between the 20% and 80% range of the band's width.
ADX: Helps to identify the strength of a trend. A value under 30 suggests that the market is not strongly trending in either direction.
RSI: Measures the speed and change of price movements. A value between 40 and 60 suggests a lack of strong momentum.
How to Use
Apply the SMI Indicator to your chart.
When the background and the candles turn grey, the market is likely in a sideways pattern.
Disclaimer
This indicator is intended for educational and analytical purposes only. It is not a recommendation to buy or sell any financial instrument. Always conduct your own analysis and consult with a financial advisor before making trading decisions.
How It Works
The SMI Indicator combines three popular trading metrics: Bollinger Bands, the Average Directional Index (ADX), and the Relative Strength Index (RSI):
Bollinger Bands: Checks if the close price is within a certain range of the middle Bollinger Band. Specifically, it checks if the close price is between the 20% and 80% range of the band's width.
ADX: Helps to identify the strength of a trend. A value under 30 suggests that the market is not strongly trending in either direction.
RSI: Measures the speed and change of price movements. A value between 40 and 60 suggests a lack of strong momentum.
How to Use
Apply the SMI Indicator to your chart.
When the background and the candles turn grey, the market is likely in a sideways pattern.
Disclaimer
This indicator is intended for educational and analytical purposes only. It is not a recommendation to buy or sell any financial instrument. Always conduct your own analysis and consult with a financial advisor before making trading decisions.
סקריפט מוגן
סקריפט זה פורסם במקור סגור ותוכל להשתמש בו באופן חופשי. אתה יכול להגדירו כמועדף כדי להשתמש בו בגרף. אינך יכול להציג או לשנות את קוד המקור שלו.
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כתב ויתור
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