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Market regime

Price behaviour that holds for a stretch of time: directional movement, sideways trade, or a period of elevated swing.

How to read the number

Most chart tools are built for one regime: those that follow direction fall apart sideways, and oscillators fall apart in a sustained move.

When the metric lies

A regime is named in hindsight. The change is visible only once the new regime has been running for a while, and no universal rule exists for spotting that moment.

Also known as: market regime

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