Range identifier by median

This study tries to highlight ranges
as they are defined by
TradingLatino TradingView user.
The study uses median values.
A range is defined as periods when the price does not move a lot.

Its default values are aimed at BTCUSDT pair and 4h timeframe.

HOW IT WORKS

For each of the bars a '5' median is calculated based on the 'highest of open and close'
For each of the bars a '5' median is calculated based on the 'lowest of open and close'

Thanks to the desviation setting both medians
have a tolerated maximum and a minimum

Condition 1:
The bar current 'highest of open and close'
needs to be between the respective tolerated
maximum and minimum

Condition 2:
The bar current 'lowest of open and close'
needs to be between the respective tolerated
maximum and minimum

If both conditions are met
then the bar is in a range


SETTINGS
Price range periods [5]: How many previous periods are used to calculate the medians

Price range maximum desviation (%) [0.6] ( > 0 ): Maximum positive desviation for range detection
Price range minimum desviation (%) [0.6] ( > 0 ): Mininum negative desviation for range detection
Desviations should be both of them a positive number


WARNING
Despite the name indicator does not identify the entire range.
It identifies when you realise you are inside a range.
E.g. If a range length is 8 periods length this range indicator
will highlight only the last 6 periods of the range.

USAGE
If your strategy signals you an upwards trend
then you might use this range detector
to know when to exit your long position

Why?

Because most of the times
the price is found to be
in a range it goes down

FEEDBACK 1
My former attempt on calculating ranges
felt too much over complex that is why
I decided to implement it with medians.
It should be easier to modify if
I want to desviation inputs to be calculated
automatically in the future.

I'm interested on different approaches on how to detect ranges.


FEEDBACK 2
I have only used this identifier in BTCUSDT 4h timeframe.
Feel free to comment down below with your suggested settings
for your favourite pair and timeframe

PINE SCRIPT TRICK
This script simulates looping an string char by char
in pine script.