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Regime Quadrant Map [XWiseTrade]
Regime Quadrant Map [XWiseTrade]
Part of the XWiseTrade Quant Suite. Follow so you don't miss the next one.
Most "regime" indicators sort the market into two boxes: trending or ranging. But that single axis hides the variable that actually decides whether a trend is tradeable — volatility. A market drifting up in dead-calm conditions and a market ripping up in violent conditions are both "trending," yet they demand opposite tactics. Collapsing them into one label is why so many trend filters fail exactly when you lean on them. This indicator separates the two questions that a one-dimensional filter fuses together, and maps the result onto four regimes instead of two.
Why volatility is measured as an ATR Z-score, not raw ATR
Raw ATR tells you nothing on its own — an ATR of 15 is enormous on one instrument and trivial on another, and huge in one era and small in the next. What matters is whether volatility is unusually high or low relative to this market's own recent behaviour. So ATR here is ranked against its own distribution over a lookback window and expressed as a Z-score: how many standard deviations above or below its own norm current volatility sits. That makes the reading self-referential and comparable across any symbol or timeframe, instead of an absolute number you'd have to re-learn for every chart.
Why trend is measured with Efficiency Ratio, not a moving-average slope
A rising moving average tells you price is higher than it was — it does not tell you how price got there. Efficiency Ratio does: it divides the net directional move by the total distance price actually travelled to make it. A value near 1 means a clean, purposeful move; near 0 means price thrashed back and forth to end up in nearly the same place. Two charts with an identical slope can have completely different efficiency, and that difference — not the slope — is what separates a trend you can ride from a trap. Slope measures result; Efficiency Ratio measures quality.
The four quadrants
Crossing the two axes gives four regimes, each with a distinct character:
GRIND (trending + low volatility) — a steady, efficient directional move; the kind you can lean into.
EXPANSION (trending + high volatility) — a violent directional move; momentum conditions, wider risk.
COIL (ranging + low volatility) — compression; energy building, often ahead of a breakout.
CHOP (ranging + high volatility) — whipsaw with no follow-through; the regime most accounts quietly bleed in.
How to use it
Watch the regime label and background tint for the current quadrant, or read the two plotted lines directly against their dashed thresholds — the ATR Z-score line for the volatility axis, the Efficiency Ratio line for the trend axis. Both thresholds and both lookbacks are adjustable, so you can set what counts as "high volatility" or "trending" for your own instrument and timeframe. An alert fires whenever the market crosses into a new quadrant, so you don't have to watch it to know the regime shifted.
What makes it different
Standard regime tools reduce the market to a single trend-versus-range line and treat volatility as an afterthought. This one builds regime from two independent axes, measures volatility as a self-referential Z-score rather than an absolute number, measures trend by path efficiency rather than slope, and resolves the market into four actionable states instead of two — because "trending" alone was never enough to decide how to trade it.
If this framework is useful, follow [XWiseTrade] to get the rest of the Quant Suite as it drops — each script extends this model into entries, risk, and prop-firm workflows. More tools and write-ups: xwisetrade.com
These are descriptive regime classifications for discretionary use, not buy/sell signals.
Part of the XWiseTrade Quant Suite. Follow so you don't miss the next one.
Most "regime" indicators sort the market into two boxes: trending or ranging. But that single axis hides the variable that actually decides whether a trend is tradeable — volatility. A market drifting up in dead-calm conditions and a market ripping up in violent conditions are both "trending," yet they demand opposite tactics. Collapsing them into one label is why so many trend filters fail exactly when you lean on them. This indicator separates the two questions that a one-dimensional filter fuses together, and maps the result onto four regimes instead of two.
Why volatility is measured as an ATR Z-score, not raw ATR
Raw ATR tells you nothing on its own — an ATR of 15 is enormous on one instrument and trivial on another, and huge in one era and small in the next. What matters is whether volatility is unusually high or low relative to this market's own recent behaviour. So ATR here is ranked against its own distribution over a lookback window and expressed as a Z-score: how many standard deviations above or below its own norm current volatility sits. That makes the reading self-referential and comparable across any symbol or timeframe, instead of an absolute number you'd have to re-learn for every chart.
Why trend is measured with Efficiency Ratio, not a moving-average slope
A rising moving average tells you price is higher than it was — it does not tell you how price got there. Efficiency Ratio does: it divides the net directional move by the total distance price actually travelled to make it. A value near 1 means a clean, purposeful move; near 0 means price thrashed back and forth to end up in nearly the same place. Two charts with an identical slope can have completely different efficiency, and that difference — not the slope — is what separates a trend you can ride from a trap. Slope measures result; Efficiency Ratio measures quality.
The four quadrants
Crossing the two axes gives four regimes, each with a distinct character:
GRIND (trending + low volatility) — a steady, efficient directional move; the kind you can lean into.
EXPANSION (trending + high volatility) — a violent directional move; momentum conditions, wider risk.
COIL (ranging + low volatility) — compression; energy building, often ahead of a breakout.
CHOP (ranging + high volatility) — whipsaw with no follow-through; the regime most accounts quietly bleed in.
How to use it
Watch the regime label and background tint for the current quadrant, or read the two plotted lines directly against their dashed thresholds — the ATR Z-score line for the volatility axis, the Efficiency Ratio line for the trend axis. Both thresholds and both lookbacks are adjustable, so you can set what counts as "high volatility" or "trending" for your own instrument and timeframe. An alert fires whenever the market crosses into a new quadrant, so you don't have to watch it to know the regime shifted.
What makes it different
Standard regime tools reduce the market to a single trend-versus-range line and treat volatility as an afterthought. This one builds regime from two independent axes, measures volatility as a self-referential Z-score rather than an absolute number, measures trend by path efficiency rather than slope, and resolves the market into four actionable states instead of two — because "trending" alone was never enough to decide how to trade it.
If this framework is useful, follow [XWiseTrade] to get the rest of the Quant Suite as it drops — each script extends this model into entries, risk, and prop-firm workflows. More tools and write-ups: xwisetrade.com
These are descriptive regime classifications for discretionary use, not buy/sell signals.
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X marks your alpha. Trade wise.
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这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
X marks your alpha. Trade wise.
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。