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Volatility State Index [Interakktive]

A volatility regime detection system that classifies current market conditions into distinct states: Expansion, Decay, and Transition. Diagnoses the current volatility regime so traders can adapt their approach accordingly.

Volatility State Index screenshot

Key Features

  • ✓Three-state volatility classification (Expansion/Decay/Transition)
  • ✓Momentum analysis applied to volatility itself
  • ✓Stability filtering to detect genuinely unstable conditions
  • ✓Persistence logic to prevent false regime flipping
  • ✓State-first visual design for instant recognition
  • ✓Adaptive threshold calculations

Use Cases

  • →Adjust position sizing based on current volatility regime
  • →Widen stops in expansion, tighten in decay states
  • →Identify volatility expansion preceding major moves
  • →Detect compression zones for potential breakout setups
  • →Adapt strategy parameters to volatility environment

Technical Details

Uses ATR with rate-of-change analysis and stability filtering. State-first design classifies volatility regimes rather than plotting raw levels.