Regime Identification
Classify trend, range, volatility expansion, and compression environments.
A market regime is the current behavior pattern of price, volatility, and participation. Common regimes include trend, range, volatility expansion, volatility compression, news-driven movement, and low-liquidity chop. The same setup can perform very differently across regimes.
Identify regime with structure, range size, volume, speed, and acceptance. A trending regime makes higher highs or lower lows with shallow pullbacks. A range regime rejects extremes and returns to value. Compression shows narrowing movement, while expansion shows larger candles and faster breaks.
Regime identification helps you choose the right playbook. Breakouts are more attractive during expansion and initiative activity. Fades are more attractive near range extremes during responsive activity. When the regime is unclear, reduce size or wait.