This code snippet demonstrates how to identify a ranging market using multiple technical indicators in ProBuilder language. The indicators used include Bollinger Bands, Keltner Channels, Moving Averages, and the Average Directional Index (ADX). The code checks for conditions such as the containment of Bollinger Bands within Keltner Channels and the ADX value being below a certain threshold, which are common techniques to determine market range.

// Define the period and the multiplier for the indicators
n = 20
multiplier = 2

// Calculate Bollinger Bands
average = average[20](close)
deviation = std[20](close)
upperBB = average + multiplier * deviation
lowerBB = average - multiplier * deviation

// Calculate Keltner Channels
atr = average[10](trueRange)
upperKC = average + multiplier * atr
lowerKC = average - multiplier * atr

// Calculate ADX
adxValue = adx[14]

// Check if Bollinger Bands are within Keltner Channels
bbInsideKC = (upperBB < upperKC) and (lowerBB > lowerKC)

// Check if ADX is below 25
lowAdx = (adxValue < 25)

// Output if the market is ranging
rangingMarket = bbInsideKC and lowAdx

Explanation of the Code:

• Lines 2-3: Set the number of periods (n) and the multiplier used in the calculation of the Bollinger Bands and Keltner Channels.
• Lines 6-8: Calculate the Bollinger Bands. The middle band is the simple moving average of the last 20 closes. The upper and lower bands are calculated by adding and subtracting the product of the standard deviation and the multiplier from the middle band.
• Lines 11-13: Calculate the Keltner Channels. These are similar to Bollinger Bands but use the Average True Range (ATR) instead of standard deviation to set the channel width.
• Line 16: Calculate the Average Directional Index (ADX) which measures the strength of a trend. A low ADX value typically indicates a lack of trend (ranging market).
• Line 19: Determine if the Bollinger Bands are entirely within the Keltner Channels, a common indication of a ranging market.
• Line 22: Check if the ADX value is below 25, reinforcing the indication of a ranging market.
• Line 25: Combine the checks into a single boolean (rangingMarket) that indicates if the market is ranging based on the criteria set.

This code snippet is a practical example of how to combine different technical indicators to assess market conditions, specifically to identify when a market is ranging.