AbsorptionRatio_AutoRiskPanel transforms any cTrader symbol into a live risk-regime dashboard 🛰️.

Instead of relying on multiple ETFs like the original multi-asset Absorption Ratio, this indicator builds a single-symbol AR proxy directly from the price action of the instrument you’re trading:

1. 📉 It calculates log returns of the current symbol.
2. 🔗 It measures autocorrelation of returns across several lags (1…7 bars, depending on the correlation period).
3. 📊 It aggregates the average absolute autocorrelation and maps it into a normalized Absorption Ratio between 0.5 and 1.0 — higher values mean more concentration and tighter behaviour.
4. 🧬 It smooths the raw signal with an EMA, producing a stable AR curve.
5. 🧪 Over a rolling statistical lookback, it computes:
6. • the mean and standard deviation of AR
   • the current Z-Score (how many σ above/below the mean)
   • the percentile rank of today’s AR vs history
6. 🤖 With Auto Thresholds enabled, the indicator continuously self-calibrates risk levels:
7. • Low Risk ≈ mean − 0.5σ
   • High Risk ≈ mean + 0.5σ
   • Extreme Risk ≈ mean + 1.5σ
     Values are clamped to [0…1] and updated bar by bar, so the regimes adapt to each symbol and timeframe.
7. 🧱 From these thresholds, AbsorptionRatio_AutoRiskPanel defines four dynamic regimes:
8. • LOW → dispersed, easy-going / risk-on environment
   • NORMAL → balanced / neutral conditions
   • HIGH → elevated clustering, risk-off tendencies
   • EXTREME → stressed environment, potential systemic risk spike 🛑
8. 🕯️ On the main chart, candles can be color-coded by risk:
   This gives you an immediate visual filter: for example, only trade trend entries when candles are not in red/orange, or size down during stressed regimes.
9. • 🔴 Red → AR statistically stressed (Z-Score ≥ threshold)
   • 🟢 Lime → AR statistically calm (Z-Score ≤ −threshold)
   • 🟧 / 🟡 Orange/Yellow → above High / near Extreme
   • ⚪ Gray → neutral zone
   • 💚 Green → low AR, more dispersed / risk-on behaviour
9. 🎯 Optional mean-reversion signals in the AR panel:
10. • 🟢 Buy arrow when AR is statistically calm and starts to turn up
    • 🔴 Sell arrow when AR is statistically stressed and starts to roll over
10. 📋 A compact info panel in the top-left corner displays:
11. • current AR value
    • active Regime + duration (bars spent in this regime)
    • Percentile, Z-Score and qualitative Status (STRESSED / CALM / NORMAL)
    • risk Bias (RISK-ON / RISK-OFF / NEUTRAL)
    • the effective Low / High / Extreme thresholds used and whether Auto Thresholds are ON or OFF

Use AbsorptionRatio_AutoRiskPanel to:

• avoid trading during statistically stressed, risk-off regimes
• identify calm environments where breakouts or trend-following may work better
• contextualize any strategy inside a dynamic risk regime framework rather than using fixed volatility filters.

⚙️ Parameters (store docs)

Core ⚙️

• Correlation Period – Length of the autocorrelation window. Controls how much history is used to estimate the Absorption Ratio. Larger values = smoother, more “macro” regime; smaller values = faster but noisier.
• Smoothing (EMA) – EMA period applied to the raw AR signal. Higher values smooth regime changes, lower values make the indicator more reactive.
• Statistical Lookback – Lookback period for AR mean, standard deviation, Z-Score and percentile. Governs how fast the statistical baseline adapts.

Thresholds 🚦

• Extreme Risk / Elevated Risk / Low Risk – Manual thresholds for AR regimes (LOW / NORMAL / HIGH / EXTREME) used when Auto Thresholds is OFF. With Auto ON they are ignored for logic and only visible as defaults.
• Use Auto Thresholds – When ON, thresholds are derived from the rolling AR statistics:
• • Low Risk = mean − 0.5σ
  • Elevated Risk = mean + 0.5σ
  • Extreme Risk = mean + 1.5σ

Signals 🎯

• Z-Score Threshold – Minimum absolute Z-Score to classify AR as statistically extreme. Drives STRESSED/CALM labels, candle overrides, and mean-reversion arrows.
• Show Reversal Signals – Enables/disables BUY/SELL arrows in the AR sub-window.
• Show Statistical Bands – Toggles ±2σ bands and the mean line around AR.

Visual 🎨

• Show Threshold Lines – Shows the effective Low / High / Extreme levels used by the regime engine (manual or auto).
• Color Candles – Colors price candles according to Z-Score and regime level for instant risk visualization.
• Show Info Panel – Displays the text panel in the top-left corner with AR, regime, stats and bias.