Editing Component:Market State Analysis (section)

== Seven Detection Algorithms ==

=== Algorithm 1: Railroad Trend ===

Detects strong one-sided moves where market moves like a train on tracks.

<pre>
Input:  Last 5 bars (open, close)
Output: is_railroad (bool), consistency (float)

Logic:
  1. Count bullish bars (close > open)
  2. Count bearish bars (close < open)
  3. Count strong bars (body > 0.3% of price)

  consistency = max(bullish, bearish) / 5
  is_railroad = (consistency > 80%) AND (strong_bars >= 3)
</pre>

'''Example:''' 5 bars: [+1.2%, +0.8%, +0.5%, +0.9%, +0.6%] → 100% bullish, 4 strong bars → Railroad

=== Algorithm 2: Creeper Move ===

Detects slow grinding price action with no clear direction.

<pre>
Input:  Last 7 bars (high, low)
Output: is_creeper (bool), avg_range (float)

Logic:
  FOR each of last 7 bars:
      range = (high - low) / high

  avg_range = average of all ranges
  is_creeper = (avg_range < 0.5%)
</pre>

'''Note:''' Uses 1-HOUR data (not 5-minute) to avoid false positives.

=== Algorithm 3: Volatility ===

Calculates market volatility from price changes.

<pre>
Input:  Close values
Output: volatility (float)

Logic:
  changes = [|close[i] - close[i-1]| / close[i-1] for each bar]
  volatility = average(changes)

Classification:
  HIGH    = volatility > 1.0%
  NORMAL  = 0.3% to 1.0%
  LOW     = volatility < 0.3%
</pre>

=== Algorithm 4: Market State Classification ===

Combines signals into overall market state.

<pre>
Input:  is_railroad, is_creeper, trend_direction, volatility
Output: MarketState enum

Logic:
  IF railroad AND direction="up"    → TRENDING_UP
  IF railroad AND direction="down"  → TRENDING_DOWN
  IF creeper                        → CREEPER_MOVE
  IF volatility > 1%                → MOMENTUM_MOVE
  IF volatility < 0.3%              → NARROW_LOW_VOLUME
  ELSE                              → RANGE_BOUND
</pre>

=== Algorithm 5: Two-Day Trend ===

Checks if last 2 daily bars agree on direction.

<pre>
Input:  Daily OHLC (last 2 bars)
Output: has_two_day_trend (bool), direction (str)

Logic:
  day1_bullish = close[-2] > open[-2]  // Yesterday
  day2_bullish = close[-1] > open[-1]  // Today

  IF both bullish  → True, "up"
  IF both bearish  → True, "down"
  ELSE             → False, "mixed"
</pre>

=== Algorithm 6: Trend Phase ===

Determines if trend is EARLY, MIDDLE, or LATE.

<pre>
Input:  Close, MA21 (50+ bars history)
Output: TrendPhase enum

Logic:
  1. Find where price crossed MA21 (trend start)
  2. Count bars since crossover = trend_length

  IF trend_length < 10   → EARLY (trend just started, risky)
  IF trend_length > 40   → LATE (trend exhausted)
  ELSE                   → MIDDLE (optimal zone)
</pre>

=== Algorithm 7: Institutional Behavior ===

Detects signs of big player activity.

'''7a. Institutional Fight:'''
<pre>
High volume (>150% average) + Narrow range (<0.5%) = Fight in progress
</pre>

'''7b. Accumulation:'''
<pre>
High volume bars (2+) + Price stable (<0.2% movement) = Accumulation
</pre>

'''7c. Break of Structure (BOS):'''
<pre>
Close breaks above swing high (bullish BOS)
Close breaks below swing low (bearish BOS)
Requires confirmation bars to avoid fakeouts
</pre>

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