Consolidation Zones[RanaAlgo]

Overview
This indicator helps traders identify price consolidation zones (ranges) and potential breakouts in the market. It is useful for spotting periods of low volatility before significant price movements.

How It Works
Detects Consolidation Zones

Uses the ADX (Average Directional Index) to determine when the market is in a consolidation phase .
When ADX is below the threshold , the indicator marks the start of a consolidation zone.

Draws a semi-transparent box around the price range, adjusting its height as new highs/lows form.
Tracks Breakouts

When price breaks above/below the consolidation box, it signals a potential trend continuation.
Displays breakout arrows/labels (configurable shape & style) when price exits the range.
Visual Features

Boxes highlight consolidation areas (customizable color, border, and style).
Labels show real-time status ("CONSOLIDATING" or "TRENDING").
Breakout signals appear as arrows or shapes (up/down).

Usefulness in Trading
Range Trading: Helps traders identify sideways markets for buying low and selling high.
Breakout Trading: Signals potential trend entries when price exits consolidation.
Trend Confirmation: Low ADX + consolidation box = weak trend; breakout = possible trend start.
Example: If price stays in a blue box (consolidation) and then breaks above with an arrow, it suggests a bullish move.