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.