The Market Phase Index is a trend-following trading indicator designed to identify whether the market is in a trend or a sideways (range-bound) phase, based on price amplitude and bar crossovers.
- If the indicator value is above 0.4 — trend-following strategies are recommended;
- If the indicator value is below 0.4 — range-bound (mean-reversion) strategies are recommended.
The Market Phase Index is especially useful for Expert Advisors (EAs) to dynamically assess favorable or unfavorable market conditions relative to their underlying strategy logic. Indicator values should be evaluated on higher timeframes.
- Download Market Phase Index for MetaTrader 4
- Download Market Phase Index for MetaTrader 5
FAQ
How does the Market Phase Index determine trend vs. range?
It analyzes price amplitude and bar overlap patterns to calculate a normalized value: >0.4 suggests directional momentum (trend), <0.4 suggests consolidation (range).
Which timeframes work best with this indicator?
Higher timeframes (e.g., H4, Daily) provide more reliable signals — avoid relying solely on M1 or M5 readings.
Can I use Market Phase Index with automated trading systems?
Yes — it’s widely used in EAs as a market regime filter to enable or disable trend/range-specific logic dynamically.
