OPEN-SOURCE SCRIPT

Sideways + Buy + Sell Detection

74
Sure! Here's the plain-language description of your script without using any code.

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### 📘 **Script Purpose**

This script is designed to detect three different types of market conditions:

1. **Sideways (range-bound) market** — useful for non-directional strategies like strangles or straddles.
2. **Bullish trend** — provides a signal to consider buying.
3. **Bearish trend** — provides a signal to consider selling.

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### 🔧 **Indicators Used**

* **RSI (Relative Strength Index)**: Measures market momentum. It's used to determine whether the market is in a bullish, bearish, or neutral zone.
* **ADX (Average Directional Index)** along with **DI+ and DI-**: Measures the strength and direction of a trend.
* **MACD (Moving Average Convergence Divergence)**: Confirms momentum and trend direction based on moving averages.

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### 🟪 **Sideways Market Signal**

A sideways (non-trending) signal is shown when:

* RSI indicates the market is neither overbought nor oversold (in the middle range).
* ADX shows weak trend strength.
* The ADX value is lower than both DI+ and DI-, suggesting indecision or lack of clear trend.

A purple label appears below the bar when this condition is met.

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### 🟩 **Buy Signal**

A buy signal is generated when:

* RSI shows strong upward momentum.
* ADX confirms there is a strong trend.
* MACD confirms bullish conditions with both the MACD and signal lines above zero and in the correct crossover direction.

A green label appears below the bar when these bullish conditions align.

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### 🟥 **Sell Signal**

A sell signal appears when:

* RSI shows strong downward momentum.
* ADX confirms a strong trend.
* MACD confirms bearish conditions, with both MACD and signal lines below zero and in the correct crossover direction.

A red label appears — currently also plotted below the bar (which you may want to move above the bar for better clarity).

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### ✅ **Use Case**

This script is suitable for:

* Deciding when to deploy **strangle/straddle** strategies in sideways markets.
* Identifying strong **bullish or bearish trends** for directional trades.
* Filtering out weak or indecisive conditions.

Declinazione di responsabilità

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