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Market Regime Detector [Trend + Volatility] - AI Trading Tech
The Market Regime Detector [Trend + Volatility] indicator classifies market conditions into four distinct regimes by analyzing Trend Strength and Volatility relative to historical averages. It is designed to help traders identify when to apply trend-following strategies versus mean-reversion strategies.
Methodology:
The script combines two standard technical indicators to determine the current state of price action:
Trend Filter (ADX): Uses the Average Directional Index to measure trend strength.
Default Threshold: 25 (Values above 25 indicate a trending market; values below indicate a ranging market).
Volatility Filter (Relative ATR): Compares the current Average True Range (ATR) to a longer-term Simple Moving Average (SMA) of the ATR.
High Volatility: Current ATR > Long-term Average.
Low Volatility: Current ATR < Long-term Average.
The 4 Regimes
The indicator visualizes these states via background colors and a dashboard status panel:
Trending / High Volatility (Green Background):
ADX is > 25 and ATR is above average. Indicates strong directional momentum with expanded range.
Trending / Low Volatility (Blue Background):
ADX is > 25 but ATR is below average. Indicates a steady trend with compressed range (often seen in drifting markets).
Ranging / High Volatility (Red Background):
ADX is < 25 but ATR is above average. Indicates a lack of direction despite wide price swings (choppy/noisy conditions).
Ranging / Low Volatility (Gray Background):
ADX is < 25 and ATR is below average. Indicates consolidation or low activity.
Inputs & Settings
ADX Smoothing: Length for the ADX calculation (Default: 14).
DI Length: Length for the Directional Movement Index (Default: 14).
Trend Threshold: The ADX level used to separate trending from ranging (Default: 25).
ATR Length: Length for the volatility calculation (Default: 14).
Vol Lookback: The lookback period for the historical average ATR (Default: 100).
Usage Notes
Real-time vs. Closing Basis: The dashboard and background update on every tick. For confirmed regime changes, it is recommended to wait for the bar close.
Dashboard: Displays the raw ADX value, Bullish/Bearish directional bias (based on DI+ vs DI-), and current volatility state.
Disclaimer: This tool is for informational purposes only and does not constitute financial advice. Always manage your risk.
Methodology:
The script combines two standard technical indicators to determine the current state of price action:
Trend Filter (ADX): Uses the Average Directional Index to measure trend strength.
Default Threshold: 25 (Values above 25 indicate a trending market; values below indicate a ranging market).
Volatility Filter (Relative ATR): Compares the current Average True Range (ATR) to a longer-term Simple Moving Average (SMA) of the ATR.
High Volatility: Current ATR > Long-term Average.
Low Volatility: Current ATR < Long-term Average.
The 4 Regimes
The indicator visualizes these states via background colors and a dashboard status panel:
Trending / High Volatility (Green Background):
ADX is > 25 and ATR is above average. Indicates strong directional momentum with expanded range.
Trending / Low Volatility (Blue Background):
ADX is > 25 but ATR is below average. Indicates a steady trend with compressed range (often seen in drifting markets).
Ranging / High Volatility (Red Background):
ADX is < 25 but ATR is above average. Indicates a lack of direction despite wide price swings (choppy/noisy conditions).
Ranging / Low Volatility (Gray Background):
ADX is < 25 and ATR is below average. Indicates consolidation or low activity.
Inputs & Settings
ADX Smoothing: Length for the ADX calculation (Default: 14).
DI Length: Length for the Directional Movement Index (Default: 14).
Trend Threshold: The ADX level used to separate trending from ranging (Default: 25).
ATR Length: Length for the volatility calculation (Default: 14).
Vol Lookback: The lookback period for the historical average ATR (Default: 100).
Usage Notes
Real-time vs. Closing Basis: The dashboard and background update on every tick. For confirmed regime changes, it is recommended to wait for the bar close.
Dashboard: Displays the raw ADX value, Bullish/Bearish directional bias (based on DI+ vs DI-), and current volatility state.
Disclaimer: This tool is for informational purposes only and does not constitute financial advice. Always manage your risk.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
Purchase our advanced, Pro indicators here: whop.com/ai-trading-tech/
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
Purchase our advanced, Pro indicators here: whop.com/ai-trading-tech/
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.