OPEN-SOURCE SCRIPT
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.
Açık kaynak kodlu komut dosyası
Gerçek TradingView ruhuyla, bu komut dosyasının mimarı, yatırımcıların işlevselliğini inceleyip doğrulayabilmesi için onu açık kaynaklı hale getirdi. Yazarı tebrik ederiz! Ücretsiz olarak kullanabilseniz de, kodu yeniden yayınlamanın Topluluk Kurallarımıza tabi olduğunu unutmayın.
Purchase our advanced, Pro indicators here: whop.com/ai-trading-tech/
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
Açık kaynak kodlu komut dosyası
Gerçek TradingView ruhuyla, bu komut dosyasının mimarı, yatırımcıların işlevselliğini inceleyip doğrulayabilmesi için onu açık kaynaklı hale getirdi. Yazarı tebrik ederiz! Ücretsiz olarak kullanabilseniz de, kodu yeniden yayınlamanın Topluluk Kurallarımıza tabi olduğunu unutmayın.
Purchase our advanced, Pro indicators here: whop.com/ai-trading-tech/
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.