VOLATILITY REGIME FILTER Trading Guide

The Volatility Regime Filter is a quantitative technical analysis tool. Volatility Regime Filter (VRF) Meta-filter indicator that identifies the current market volatility regime. Does NOT generate trade signals on its own — designed to FILTER signals

What does the indicator show?

• Market Structure & Momentum: Visualizes prevailing trend directions and key reversal zones.
• BUY / SELL Signals: Highlights confirmed entry and exit opportunities based on quantitative rules.
• Dynamic Boundaries: Provides adaptive levels for managing trade risk and reward expectations.

Key Settings

• ATR Length (atrLen): Controls the calculation period and sensitivity for market detection.
• Price EMA Length (emaLen): Controls the calculation period and sensitivity for market detection.
• Percentile Lookback (lookback): Controls the calculation period and sensitivity for market detection.
• Signal EMA Length (signalLen): Controls the calculation period and sensitivity for market detection.
• Low Vol Threshold (lowThresh): Controls the calculation period and sensitivity for market detection.
• High Vol Threshold (highThresh): Controls the calculation period and sensitivity for market detection.
• Show Signal Line (showSignal): Controls the calculation period and sensitivity for market detection.
• Show Regime Zones (showZones): Controls the calculation period and sensitivity for market detection.
• Show Regime Labels (showLabels): Controls the calculation period and sensitivity for market detection.
• Signal EMA 2 Length (ema2Len): Controls the calculation period and sensitivity for market detection.
• Directional Efficiency Length (trendLen): Controls the calculation period and sensitivity for market detection.
• Flat Efficiency Threshold (flatEfficiencyThresh): Controls the calculation period and sensitivity for market detection.
• Vol Score Line (scoreLine): Controls the calculation period and sensitivity for market detection.
• Signal Line (signalLine): Controls the calculation period and sensitivity for market detection.
• Signal EMA 2 Line (ema2Line): Controls the calculation period and sensitivity for market detection.
• Low Vol Bars (lowVol): Controls the calculation period and sensitivity for market detection.
• Normal Vol Bars (normalVol): Controls the calculation period and sensitivity for market detection.
• High Vol Bars (highVol): Controls the calculation period and sensitivity for market detection.
• Low Zone Fill (lowZoneFill): Controls the calculation period and sensitivity for market detection.
• High Zone Fill (highZoneFill): Controls the calculation period and sensitivity for market detection.
• Low Threshold (lowThreshLine): Controls the calculation period and sensitivity for market detection.
• High Threshold (highThreshLine): Controls the calculation period and sensitivity for market detection.
• Regime Up Marker (regimeUp): Controls the calculation period and sensitivity for market detection.
• Regime Down Marker (regimeDown): Controls the calculation period and sensitivity for market detection.
• Vol Score (volScore): Controls the calculation period and sensitivity for market detection.
• Hidden Vol (_volScore): Controls the calculation period and sensitivity for market detection.
• Signal (smoothScore): Controls the calculation period and sensitivity for market detection.
• Signal EMA 2 (ema2Score): Controls the calculation period and sensitivity for market detection.
• Norm ATR (normAtr): Controls the calculation period and sensitivity for market detection.
• Directional Efficiency (trendEfficiency): Controls the calculation period and sensitivity for market detection.
• Regime (1/2/3) (regime): Controls the calculation period and sensitivity for market detection.
• Volatility Score (volScore): Controls the calculation period and sensitivity for market detection.
• Smooth Signal (smoothScore): Controls the calculation period and sensitivity for market detection.
• Signal EMA 2 (ema2Score): Controls the calculation period and sensitivity for market detection.
• Directional Efficiency (trendEfficiency): Controls the calculation period and sensitivity for market detection.
• Regime Level (regime): Controls the calculation period and sensitivity for market detection.
• Is Low Volatility (isLowVol): Controls the calculation period and sensitivity for market detection.
• Is Normal Volatility (isNormalVol): Controls the calculation period and sensitivity for market detection.
• Is Directional (isDirectional): Controls the calculation period and sensitivity for market detection.
• Is High Volatility (isHighVol): Controls the calculation period and sensitivity for market detection.
• Vol Regime Increase (regimeChangeUp): Controls the calculation period and sensitivity for market detection.
• Vol Regime Decrease (regimeChangeDown): Controls the calculation period and sensitivity for market detection.
• Vol Expanding (volExpanding): Controls the calculation period and sensitivity for market detection.
• Vol Contracting (volContracting): Controls the calculation period and sensitivity for market detection.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used both as a direct signal source and as a market-state filter.

1. Signal Events

• isLowVol - Is Low Volatility event signal.
• isNormalVol - Is Normal Volatility event signal.
• isDirectional - Is Directional event signal.
• isHighVol - Is High Volatility event signal.
• regimeChangeUp - Vol Regime Increase event signal.
• regimeChangeDown - Vol Regime Decrease event signal.
• volExpanding - Vol Expanding event signal.
• volContracting - Vol Contracting event signal.

2. Filters and Trade Levels

• atrLen - ATR Length value used for structural qualification or thresholds.
• emaLen - Price EMA Length value used for structural qualification or thresholds.
• lookback - Percentile Lookback value used for structural qualification or thresholds.
• signalLen - Signal EMA Length value used for structural qualification or thresholds.
• lowThresh - Low Vol Threshold value used for structural qualification or thresholds.
• highThresh - High Vol Threshold value used for structural qualification or thresholds.
• showSignal - Show Signal Line value used for structural qualification or thresholds.
• showZones - Show Regime Zones value used for structural qualification or thresholds.
• showLabels - Show Regime Labels value used for structural qualification or thresholds.
• ema2Len - Signal EMA 2 Length value used for structural qualification or thresholds.
• trendLen - Directional Efficiency Length value used for structural qualification or thresholds.
• flatEfficiencyThresh - Flat Efficiency Threshold value used for structural qualification or thresholds.
• volScore - Vol Score value used for structural qualification or thresholds.
• _volScore - Hidden Vol value used for structural qualification or thresholds.
• smoothScore - Signal value used for structural qualification or thresholds.
• ema2Score - Signal EMA 2 value used for structural qualification or thresholds.
• normAtr - Norm ATR value used for structural qualification or thresholds.
• trendEfficiency - Directional Efficiency value used for structural qualification or thresholds.
• regime - Regime (1/2/3) value used for structural qualification or thresholds.
• volScore - Volatility Score value used for structural qualification or thresholds.
• smoothScore - Smooth Signal value used for structural qualification or thresholds.
• ema2Score - Signal EMA 2 value used for structural qualification or thresholds.
• trendEfficiency - Directional Efficiency value used for structural qualification or thresholds.
• regime - Regime Level value used for structural qualification or thresholds.

Strategy Example: Enter Long when buySignal is true and trendFilter == 1, ensuring trades align with dominant momentum.