What is market regime classification?
Market regime classification labels the current state of a market from its price and volume structure, for example accumulation, markup, distribution, markdown, or a volatility squeeze. The output is meaning, not raw indicator values.
State, not a number
Indicators like RSI or ATR give numbers. A regime classifier reads those numbers together and returns a state that describes what the market is doing and why it matters. Knowing a name is in distribution near its highs is more actionable than knowing its RSI reading.
Regimes come in a primary phase plus secondary conditions. Phases include accumulation, markup, distribution, markdown, momentum continuation, mean-reversion setup, squeeze setup, and range rotation. Secondary flags include volatility expansion, volatility compression, and liquidity sweep.
Why regimes matter
The same signal means different things in different regimes. A breakout from accumulation is not the same as a breakout from a late-stage markup. Classifying the regime lets a downstream read weight risk correctly, which is why LyraMind's committee uses regime for its risk and options lenses.
Regime also carries a risk stage, such as early-stage, late-stage, or elevated, and a participation reading of strong, moderate, or weak, so an answer can say not just what state but how much conviction is behind it.
How LyraMind implements it
The regime engine reads structure from candles: directional efficiency, up-versus-down volume pressure, range position, RSI, ATR percentile, and Bollinger bandwidth percentile. It detects a liquidity sweep when a bar wicks beyond a prior extreme and closes back inside. From these it classifies the primary phase, secondary regimes, participation, risk stage, and a confidence, and it pairs the state with a plain-English meaning.
This is a technical classifier over price and volume, educational and descriptive. It needs a minimum of 60 bars to classify and returns insufficient_data otherwise. It never issues a buy or sell call.
Related concepts
Regime classification feeds the LyraMind Score's risk and options lenses and the verification panel's regime methodology reasoner. It is one of the meaning-layer engines behind the LyraMind Pulse event feed.
- Labels a market state from price and volume structure, not raw indicator values
- Phases: accumulation, markup, distribution, markdown, momentum continuation, and more
- Secondary flags: volatility expansion, volatility compression, liquidity sweep, squeeze
- Carries a risk stage and a participation reading alongside the phase
- Reads efficiency, volume pressure, range position, RSI, ATR, and Bollinger bandwidth
- Technical and descriptive; needs 60+ bars and gives no buy or sell call
Questions
What regimes can LyraMind classify?
Primary phases like accumulation, markup, distribution, markdown, momentum continuation, mean-reversion setup, squeeze setup, and range rotation, plus secondary flags for volatility and liquidity sweeps.
Is regime classification a trading signal?
No. It is a descriptive, educational read of the market state. It carries no buy, sell, or hold recommendation.
How much history does it need?
At least 60 bars. With less, it returns an insufficient_data state rather than guessing.