// This indicator is useful for determining which markets you want to trade. If you're a channel trader, you want to look for ranging markets. 
// If you are a trend trader, you want to look for trending markets. This indicator includes three other indicators (ATR [combined with an SMA], ADX, and RSI) 
// to determine whether the market is trending or ranging. It also includes a time frame specification for identifying the long term behavior of the security
// you are trading. Simply select which indicators you want to use to determine market behavior. This indicator is a great tool to use to filter trades, and
// I personally use it when trading every day. 

//@version=4
study("Trending/Ranging", resolution = "", overlay = true)

// Inputs
atrColor = input(title = "ATR Color", type = input.color, defval = color.green)
adxColor = input(title = "ADX Color", type = input.color, defval = color.blue)
rsiColor = input(title = "RSI Color", type = input.color, defval = color.yellow)


// ATR
atr = rma(tr(true), 14)
sma = sma(atr, 20)

atrTrending = if atr > sma
    true
else
    false

// ADX
adxlen = 14
dilen = 14
dirmov(len) =>
	up = change(high)
	down = -change(low)
	plusDM = na(up) ? na : (up > down and up > 0 ? up : 0)
	minusDM = na(down) ? na : (down > up and down > 0 ? down : 0)
	truerange = rma(tr, len)
	plus = fixnan(100 * rma(plusDM, len) / truerange)
	minus = fixnan(100 * rma(minusDM, len) / truerange)
	[plus, minus]
adx(dilen, adxlen) =>
	[plus, minus] = dirmov(dilen)
	sum = plus + minus
	adx = 100 * rma(abs(plus - minus) / (sum == 0 ? 1 : sum), adxlen)
sig = adx(dilen, adxlen)

adxTrending = if sig > 20
    true
else
    false

// RSI
up = rma(max(change(close), 0), 14)
down = rma(-min(change(close), 0), 14)
rsi = down == 0 ? 100 : up == 0 ? 0 : 100 - (100 / (1 + up / down))

rsiTrending = if rsi > 60 or rsi < 40
    true
else
    false
    

// Plots
bgcolor(atrTrending ? color.green : na)
bgcolor(adxTrending ? color.red : na)
bgcolor(rsiTrending ? color.yellow : na)