Regime Detector
Uses 5 independent signals (ATR percentile, return dispersion, wick ratio, volume surge, funding extremity) to classify the current market regime. Helps you know when to be aggressive vs defensive.
What is this scanner?
The Regime Detector classifies the current market environment into one of three states: QUIET (low volatility compression), NORMAL (healthy trending or ranging), or CHAOS (extreme volatility, usually during crashes or euphoric pumps).
This isn't a setup scanner — it's a market context scanner. It tells other scanners what kind of environment they're operating in, which dramatically affects which setups are likely to work. Breakout scanners thrive in QUIET-to-NORMAL transitions. Mean reversion works in NORMAL. Almost nothing works reliably in CHAOS.
Origin & History
Regime detection originates from quantitative finance research in the 1990s, particularly Hamilton's Markov Switching Models (1989). The concept that markets operate in distinct states — and that strategies should adapt to those states — is foundational to modern systematic trading.
QSA simplifies the academic framework into three practical regimes that crypto traders can act on. The implementation uses a combination of ATR percentile, Bollinger Band width, and correlation metrics to classify the current state.
Detection Criteria
ATR Percentile
Current ATR (14-period) ranked against its 100-period history. Low ATR percentile suggests QUIET, extreme high suggests CHAOS.
BB Width
Bollinger Band width as a percentage of price. Extremely narrow bands confirm QUIET regime; very wide bands confirm CHAOS.
Cross-Asset Correlation
When BTC, ETH, and top altcoins move in tight lockstep, the market is typically in CHAOS (panic or euphoria). Low correlation suggests NORMAL conditions.
Regime Persistence
Requires the state to persist for at least 3 candles before declaring a regime change. This prevents whipsawing between states on single volatile candles.
Grading Breakdown
Clear regime with high confidence and stability. The market has been in this state for 6+ candles with all indicators agreeing.
Regime is well-established with most indicators confirming. May be transitioning but the current state is clear.
Regime is identifiable but some indicators are mixed. The market may be transitioning between states.
Regime is ambiguous — indicators are conflicting. This often occurs during regime transitions and suggests caution.
Common Mistakes
Trading breakout strategies during CHAOS regime. When everything is volatile, squeezes and breakouts have much lower follow-through rates.
Ignoring regime transitions. The most profitable period is often the transition from QUIET to NORMAL, when compressed volatility begins expanding.
Treating regime as a setup instead of context. The regime detector enhances other scanners — it doesn't generate trade signals on its own.
Not adjusting position sizes for regime. CHAOS regime should mean smaller positions, regardless of how strong other signals appear.
How to Trade
Entry Context
Use regime as a filter, not a trigger. In QUIET: prioritize breakout and momentum ignition scanners. In NORMAL: all strategies are viable. In CHAOS: reduce size or sit out entirely.
Risk Management
Scale position sizes by regime. QUIET: normal size. NORMAL: normal to slightly larger. CHAOS: 50% of normal or no new positions. This single adjustment dramatically improves risk-adjusted returns.
Target Framework
Regime context affects target expectations. QUIET breakouts often produce larger moves (compressed spring). NORMAL trends are steady. CHAOS moves are large but unpredictable — take profits quickly.
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See live setups →This is not a prediction of future price movement — it is a way to prioritize which setups deserve your analysis first.
QuantScan AI scans 150+ crypto perpetuals in real-time, 24/7. Not financial advice. Past performance does not guarantee future results.