• What This Indicator Does

This indicator combines two independent analytical engines into a single overlay on your chart. The first — the Smoothed Z-Score — classifies every bar into a statistical regime (Bull, Bear, or Neutral) and colors it accordingly. The second — the Amplitude-Momentum (AMP) detector — identifies sustained directional price sequences by measuring cumulative returns and validating them with regression analysis.

Together, they produce a chart where both the statistical environment and the momentum structure of the market are visible simultaneously, without requiring you to interpret separate oscillator panels or draw anything by hand.

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• The Two Analytical Layers
• Layer 1 — Z-Score Regime Classification

The Z-Score measures how far the current price has moved from its recent statistical centre, expressed in standard deviations. When that deviation exceeds a meaningful threshold, the indicator declares a directional regime has begun.

This is a fundamentally different question than "is price going up?" — it asks "has price moved far enough from equilibrium that something structurally meaningful is happening?"

There are three regime states:

Bull Regime — price has deviated significantly above its rolling statistical centre. The chart colors green.

Bear Regime — price has deviated significantly below its rolling statistical centre. The chart colors red.

Neutral — price is within the normal range of variation. The indicator does not simply go silent here. Instead, it enters a synthetic trend mode that continues to classify each neutral bar as leaning bullish or bearish (more on this below).

• Layer 2 — AMP Sequence Detection

The AMP layer analyses cumulative price returns (measured in basis points) and identifies momentum sequences — periods where price is making a sustained directional move of meaningful size.

The detection works in two passes. The first pass scans price returns for directional moves that exceed a minimum amplitude threshold, flagging reversals, retracements, and inactive periods. The second pass applies an OLS (Ordinary Least Squares) regression refinement — it fits a regression line through each detected sequence from both ends and trims any region where the slope does not meet the amplitude requirement. This eliminates false positives where price technically moved enough but the move was noisy or unconvincing.

There are several AMP states visible on the chart:

Up Sequence in Progress — price is actively making a sustained upward move of meaningful amplitude.

Down Sequence in Progress — price is actively making a sustained downward move of meaningful amplitude.

Sequence End — a confirmed momentum sequence has just completed. Marked with a triangle on the chart. This signals that the prior directional push has exhausted itself.

Developing Sequence — on the live (forming) bar, a new sequence is being detected but is not yet confirmed by a closed bar. Shown in a distinct colour so you can distinguish tentative from confirmed reads.

Neutral — no directional momentum of sufficient amplitude is present.

• How the Two Layers Work Together

The Z-Score tells you what statistical state the market is in — whether price has deviated enough from its norm to constitute a regime, or whether it is ranging within normal bounds.

The AMP layer tells you what price is actively doing right now — whether a directional momentum sequence is running, has just ended, or hasn't started.

Neither layer alone gives you the full picture. A Z-Score bull regime confirms that the statistical environment favours upside, but says nothing about whether momentum is currently active or pausing. An AMP up sequence confirms that price is moving with force, but says nothing about whether that move is statistically significant relative to the instrument's recent behaviour.

When both layers agree, you have a much higher-quality read on market conditions. The companion trading bot uses exactly this principle — it only opens trades when the Z-Score regime, the AMP sequence state, and a directional Bias filter all align simultaneously.

• Signal Markers and Sequence End Markers

The indicator places visual markers on the chart at several types of events:

Z-Score Regime Start Markers appear on the exact bar where a new bull or bear regime is confirmed. These tell you precisely when the statistical environment shifted.

Neutral Cross Markers appear when price crosses the synthetic trendline during a neutral phase. A bullish cross means price has moved above the projected regime trendline; a bearish cross means price has dropped below it. These identify structural inflection points within neutral zones.

AMP Sequence End Markers appear as triangles at the last bar of a confirmed momentum sequence. An upward triangle marks the end of an up sequence; a downward triangle marks the end of a down sequence. These are the points where a directional push has been confirmed as exhausted — often the most actionable information on the chart for timing entries and exits.

All marker types can trigger popup and sound alerts.

• The OLS Refinement — Why AMP Sequences Are Trustworthy

Many momentum detectors simply measure price change over a window. The AMP layer goes further. After the initial detection pass identifies candidate sequences, every detected region is validated using Ordinary Least Squares regression — the same method used in formal statistical analysis.

The regression is applied in both directions (forward from sequence start, backward from sequence end) and the maximum validated extent is kept. Any portion of a sequence where the regression slope does not meet the minimum amplitude requirement is trimmed away. What remains is a sequence where the directionality has been mathematically confirmed, not just assumed from raw price movement.

This two-pass approach is why the AMP sequences are notably cleaner than what you would get from a simple momentum oscillator. False positives from choppy sideways action are filtered out. Only moves with genuine, regression-validated directional force survive.

• Robust Statistics — Outlier Resistance Built In

A standard Z-Score uses mean and standard deviation, both of which are highly sensitive to outliers. A single extreme candle (news spike, flash crash) can warp the mean and inflate the standard deviation, causing misleading readings for many bars afterward.

This indicator offers an alternative statistical mode using Median and MAD (Median Absolute Deviation) instead. These measures are inherently resistant to outliers — a single extreme value does not drag the centre or inflate the spread.

In markets prone to sudden spikes (news-driven instruments, thin liquidity periods), robust statistics produce meaningfully better regime detection. This is not a cosmetic option — it is a structural improvement in signal quality.

• Influence — Controlling How Regimes Adapt

During an active Z-Score regime, new price values are blended into the filtered series using a parameter called Influence. This controls how much the current price affects the rolling statistical window during a regime.

At one extreme, the regime's statistical centre ignores new price entirely and maintains its original reference frame — useful for detecting when price finally exhausts relative to where the move started. At the other extreme, the centre adapts fully to incoming prices, so only fresh deviations from the most recent behaviour will trigger or sustain a regime.

This is not a smoothing parameter in the traditional sense. It controls the memory of the regime itself — how quickly the indicator's internal reference frame adjusts to the reality of an ongoing move.

• Signal Margin — Hysteresis That Prevents Flickering

One of the most common problems with threshold-based indicators is flickering: price hovers near the threshold and the signal alternates rapidly between active and inactive.

This indicator solves this with a built-in hysteresis mechanism. Once a regime is active, the effective threshold to maintain it is reduced by a configurable margin. It takes more force to start a regime than to sustain one. Once the market commits to a direction, the indicator holds that reading until there is a genuine reversal — not just noise near the boundary.

• Live Detection — Real-Time AMP Reads on the Forming Bar

Most sequence-based indicators only update when a bar closes. The AMP layer includes a live detection mode that runs the full algorithm including the forming (live) bar, producing a real-time read on whether a new sequence is developing before it is confirmed.

Developing sequences are shown in a distinct colour so you can always tell the difference between a confirmed read and a tentative one. This gives you the earliest possible awareness of momentum shifts without sacrificing the integrity of confirmed signals.

• Confirmation — Optional Delay for Both Layers

Both analytical layers support optional confirmation requirements:

For the Z-Score, a configurable number of consecutive bars above the threshold can be required before a regime is declared confirmed. The signal marker is placed on the exact bar where confirmation completes, not where the threshold was first crossed.

For the AMP layer, sequence ends can require a configurable number of non-resuming bars after the sequence concludes before the end is confirmed. This prevents premature end markers when a sequence briefly pauses and then resumes.

Both trade timeliness for reliability. In choppy conditions, even one additional confirmation bar eliminates the majority of false starts.

• What Makes This Indicator Different

Most chart indicators give you a single dimension — either trend strength, or momentum, or volatility. You are left to cross-reference multiple panels and assemble the picture yourself.

This indicator provides two independent analytical dimensions on a single overlay. The Z-Score tells you the statistical state of the market. The AMP layer tells you what momentum is doing inside that state. Together they answer the two questions that matter most: is the market in a meaningful move, and is that move still running?

The synthetic trendline system means you are never in an informational vacuum. Even during the quietest neutral phases, the indicator provides a directional reference derived from the most recent meaningful regime.

The OLS regression refinement means the momentum sequences you see on the chart have been mathematically validated, not just inferred from noisy price action.

The use of robust statistics, signal hysteresis, and dual-layer confirmation means the indicator is engineered to resist the most common failure modes: outlier sensitivity, boundary flickering, false breakouts, and premature sequence-end calls.

Finally, the indicator is designed as a foundation layer. Its regime and sequence outputs are consumed directly by the companion trading bot, which requires alignment between the Z-Score regime, the AMP sequence state, and a directional Bias filter before any trade is placed. The indicator is not a standalone signal generator — it is the analytical backbone of a multi-layered decision system built for real capital.

• Status Display

The AMP layer includes an on-chart status panel that shows the current momentum state and the amplitude of the active sequence in basis points. The panel updates in real time and uses distinct colours for each state — active up sequence, active down sequence, developing sequence, sequence end, and neutral — so the current condition is readable at a glance without inspecting individual bars.