🤖 AI🔒 Protected
Market Regime (AI)
AI overlay that classifies the current market as trending, ranging, or volatile using ADX strength and EMA slope, helping you pick the right strategy for current conditions.
210KUses
18400Likes
0Comments
Live Demo — Market Regime (AI) applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is Market Regime (AI)?
An on-chart classifier that continuously labels the prevailing market condition as Trending, Ranging, or Volatile, blending a trend-strength reading with a directional-momentum reading.
How It Works
- Trend strength: Average Directional Index over
adxLenbars. - Trend direction/slope: an EMA of length
emaLentracked bar-to-bar for slope. - Classification: high ADX + one-directional slope = Trending; low ADX + flat/oscillating slope = Ranging; erratic ADX + wide-range bars = Volatile.
Parameters
| Parameter | Default | Description |
|---|---|---|
| adxLen | 14 | Lookback for the ADX trend-strength calculation |
| emaLen | 21 | Lookback for the EMA used to measure trend slope/direction |
Signal Interpretation
- Trending regime favors trend-following tools over fading moves.
- Ranging regime favors mean-reversion setups and disfavors breakout chasing.
- Volatile regime signals wider stops, smaller size, and caution around fresh bets.
- A regime flip often precedes the start of a sustained directional leg.
- Persistent Trending readings that weaken in ADX often precede a stall.
Tips & Best Practices
- Use as a filter, not a standalone entry signal — pair with a directional tool.
- Shorten parameters for intraday charts; lengthen for daily/weekly to avoid whipsaw labels.
- Cross-check regime changes against volume.