Nifty Trend vs Range (Final)

This indicator is designed to help you quickly identify whether the Nifty market is trending, ranging, or preparing for a breakout by combining three volatility and trend-strength measures:

India VIX (Volatility Index)

ADX (Average Directional Index)

ATR (Average True Range)

It creates a Trend vs Range Decision Matrix that categorizes the market into actionable states such as Range – Quiet, Breakout Watch, Trend – Smooth, Trend – Confirmed, Trend – Volatile, or Choppy / Noisy.

🔑 How it Works

India VIX (Market Volatility)

Pulled directly from NSE:INDIAVIX (or your chosen symbol).

VIX thresholds are defined:

Below VIX Low → Calm market (often ranges).

Between VIX Low & High → Neutral/moderate volatility.

Above VIX High → High volatility (potential big moves or choppiness).

VIX can be scaled and plotted in the same pane with ADX/ATR, or shown separately with a companion script.

ADX (Trend Strength)

Custom calculation (Wilder’s smoothing, not built-in ta.adx), to ensure more consistent results.

Thresholds (auto-tuned by timeframe if enabled):

Low ADX → Weak/no trend, sideways.

High ADX → Strong directional trend.

ATR (Volatility Expansion)

ATR compared to a moving average of ATR detects whether volatility is rising or flat.

Used as confirmation for breakouts or fading moves.

🧠 Market State Logic

The script combines the three signals into an interpretable market state:

Range – Quiet → VIX low, ADX low, ATR flat

Trend – Smooth → VIX low, ADX high

Breakout Watch → VIX neutral, ADX low, ATR rising

Trend – Confirmed → VIX neutral, ADX high, ATR rising

Choppy / Noisy → VIX high, ADX low, ATR rising

Trend – Volatile → VIX high, ADX high, ATR rising

Neutral → fallback if conditions don’t match

Each state is color-coded with background shading and displayed as a persistent label with key metrics (VIX, ADX, ATR).

⚙️ Features

✅ Intraday Auto-Tuning
ADX/ATR thresholds automatically adjust depending on chart timeframe (5m, 15m, etc.).

✅ Scalable VIX Plotting
Option to overlay a scaled VIX line in the same pane or hide it if you use a separate VIX pane.

✅ Persistent State Label
Shows the current regime, timeframe, and key values. Updates every bar without stacking multiple labels.

✅ Alerts Ready
Alerts for each market regime can be set directly in TradingView.

✅ Background Coloring
Quick at-a-glance identification of current state.

🎯 How to Use

Ranging markets (low VIX, low ADX, flat ATR): Favor mean-reversion strategies like option selling, iron condors, or scalping.

Smooth trends (low VIX, high ADX): Favor directional trades with futures/options spreads.

Breakout Watch: Stay alert for possible trend initiation.

Confirmed trends (neutral VIX, high ADX, rising ATR): Ideal for momentum trading.

Volatile trends (high VIX, high ADX): Use caution, hedge positions, or trade with wider stops.

Choppy/Noisy (high VIX, low ADX): Avoid overtrading, expect false signals.