The original problem: The is great at finding ranging markets, but it is sometimes very slow, which means most of the time it only catches the end of a trend.
This indicator tries to solve this. It uses the and filters it using a factor that is based on the standard deviation of the ATR.
The ATR based filter is calculated by first calculating the running standard deviation of the ATR, and then looking at that in relation to its recent low to find a filtering factor to use on the . This makes the more reactive to trends, but also slightly more likely to miss identify ranges.
This is the bar colour version of the indicator. It changes the colour of the bars when it it thinks the market is ranging and when it thinks it is trending.
Yellow = Trending
Transparent gray = Ranging
AUDNZD on the 4HR Time Frame
**ON THE CHART INDICATORS**
- In the Top Panel we have our version of Accumulation and Distribution with an added to Identify a trend in ACC / DIST a little easier.
- On the Chart we have this indicator which changes the Candle Colour to match the conditions.
- Below the chart we have our panel version of the Berlin Range Index
- In the Bottom Panel we have our action locator tool which is also extremely powerful at identifying ranging markets and trends.
**MASTERS OF TRADING**
Many Thanks and Trade Safe!
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.