Market Entropy

30/08/2025
25
Desktop



Market Entropy is a dual indicator (oscillator + optional price overlay) that quantifies market organization and flags regime shifts across Order → Transition → Chaos. It adds a second line, Trendness (DC), to separate true trend from volatility squeeze.
How it works:
- Uses only OHLCV components: DC (directional consistency), FlipRate (sign flips), Volatility_n (ATR/ATRlong), VolumeTurb (stddev of ΔVolume).
- Raw entropy:
E0 = 0.5*(1-DC) + 0.3*(FlipRate*VolN) + 0.2*VolumeTurb)
. - Anti-squeeze term lowers E during ATR compressions → final Entropy ∈ [0..1] with EMA smoothing.
- Markers:
- CRYSTAL — cross below LowThr (order emerges: trend or pre-break squeeze).
- DISSOLVE — cross above HighThr (order breaks: chaos/trend decay).
What you see:
- In the panel: Entropy, Entropy(EMA), Trendness (DC), Low/High thresholds, zone background.
- On chart (toggleable): state-colored bars, a slim ribbon above highs, and CRYSTAL/DISSOLVE markers.
Reading guide:
- E < LowThr → Order:
- with high DC → organized trend;
- with low ATR → squeeze (expect break).
- LowThr…HighThr → Transition: structure forming; wait for resolution.
- E > HighThr → Chaos: uncertainty / trend wear-off; avoid naive continuation entries.
Playbooks:
- Squeeze → CRYSTAL → Break/Retest — trade the breakout.
- Trend → DISSOLVE — scale out or tighten risk.
0.0
Đánh giá: 0
Đánh giá của khách hàng
Sản phẩm này chưa có đánh giá nào. Bạn đã dùng thử chưa? Hãy là người đầu tiên chia sẻ với mọi người!
Sản phẩm khác của tác giả này
Bạn cũng có thể thích