Market Pressure Regime [Interakktive]

The Market Pressure Regime (MPR) is a 4-state market classifier that models how structural forces create "pressure zones" — regions where price movement is either supported (Release) or suppressed (Pinned) by market microstructure.

It combines compression analysis, follow-through efficiency, and stress detection into a composite pressure score, classifying markets into Release, Suppressed, Transition, or Trap states — helping traders understand WHY price is moving (or not moving) in the current environment.

█ USAGE



MPR addresses a core question traders face: Is the market in a regime where directional moves are likely to follow through, or is it structurally pinned?

For swing traders, MPR identifies Release phases where momentum strategies work best, and Suppressed phases where mean reversion dominates.

For day traders, it highlights Trap conditions — high effort with no follow-through — where reversals are probable and trend entries fail.

🔹 The 4-State Model



The indicator classifies markets into four distinct regimes:

• Release (Teal): Pressure score ≥ +5. Directional flow dominates. Price moves efficiently with follow-through. Favor trend continuation.

• Suppressed (Grey): Pressure score ≤ -5. Compression dominates. Price is range-bound or pinned. Fade extremes, expect reversion.

• Transition (Amber): Score between thresholds OR instability detected. Regime is uncertain — wait for confirmation before committing.

• Trap (Magenta): High stress + low follow-through. Effort without result. Expect reversals.

🔹 Reading the Pressure Histogram



The histogram displays the composite Pressure Score (range approximately -100 to +100):

• Positive values: Follow-through exceeds compression. Market is "releasing" — directional moves are supported.

• Negative values: Compression exceeds follow-through. Market is "suppressed" — price movement is constrained.

• Color reflects confirmed state: The histogram uses persistence filtering — a state must hold for N bars before the color changes, preventing false signals from noise.

🔹 The 5-Stage Calculation

MPR synthesizes five analytical stages into the final state:

1. Compression Score: Measures how tight the current range is relative to ATR. High compression suggests structural forces are pinning price.

2. Follow-Through Score: Measures price path efficiency (MER-style). Efficient moves indicate genuine directional flow, not chop.

3. Stress Score: Detects effort-without-result (ERD-style). High volume or range with no price progress = absorption.

4. Composite Pressure: Combines follow-through and compression into a single directional score.

5. Persistence Filter: Requires states to hold for configurable bars before confirming, eliminating flickering.

█ SETTINGS

Core Settings
• ATR Length: Period for volatility normalization. Default 14.
• Baseline Lookback: Period for compression and efficiency baselines. Default 20.
• Volume Average Length: Period for stress calculation baseline. Default 20.

State Classification
• Release Threshold: Pressure score above this = Release. Default +5.
• Suppressed Threshold: Pressure score below this = Suppressed. Default -5.
• Trap Threshold: Stress score above this (with low follow-through) = Trap. Default 30.
• Persistence Bars: Bars required to confirm state change. Default 3.
• Stability Lookback: Period for stability calculation. Default 20.
• Stability Threshold: Below this = forced Transition state. Default 0.5.

Visual Settings
• Show Pressure Histogram: Display the main pressure score histogram.
• Show Zero Line: Display the zero reference line.
• Show Background Tint: Subtle background color by state (default OFF).

Data Window
• Show Data Window Values: Export all calculated scores for analysis.

█ INTERPRETATION GUIDE

When to Use Trend Strategies (Release):
• Histogram tall and positive
• Teal coloring confirmed
• Price making efficient higher highs or lower lows

When to Use Mean Reversion (Suppressed):
• Histogram flat or negative
• Grey coloring confirmed
• Price oscillating without follow-through

When to Wait (Transition):
• Amber coloring
• Mixed signals — don't force trades
• Wait for state to resolve

When to Expect Reversals (Trap):
• Magenta coloring
• High volume moves that don't stick
• Often occurs at structural inflection points

█ COMPLEMENTARY TOOLS

MPR pairs well with:
• Volatility State Index (VSI) — Confirms whether volatility is expanding into the pressure regime
• Effort-Result Divergence (ERD) — Provides bar-by-bar absorption/vacuum detection
• Market Efficiency Ratio (MER) — Validates follow-through quality

█ SUITABLE MARKETS

Works across all liquid markets:
• Equities: SPY, QQQ, liquid single stocks
• Futures: ES, NQ, CL, GC
• Crypto: BTC, ETH
• Forex: Major pairs

Works on any timeframe, but 1H–Daily provides cleanest regime classification. Intraday (5m–15m) useful for session-level tactical decisions.

█ OPEN SOURCE

This indicator is open-source for educational purposes. Review the code to understand the full calculation methodology.

█ DISCLAIMER

This indicator is for educational and informational purposes only. It does not constitute financial advice. Past performance does not guarantee future results. Always conduct your own analysis and use proper risk management.