Consolidation Chopper

█ OVERVIEW

Consolidation Chopper is a regime detection indicator designed to identify whether the market is currently in a consolidation (sideways) phase or a trending phase. The indicator uses a proprietary multi-timeframe approach to analyze price action across different windows, providing a more robust classification than single-timeframe methods.

The indicator features an impulse override system that can detect sudden breakouts from consolidation ranges, allowing for faster regime transitions when significant price movement occurs.


█ FEATURES

Three-State Regime Detection
• Sideways — Market is consolidating with no clear directional bias
• Breakout — An impulse move has been detected, signaling a potential regime change
• Trending — Market is exhibiting directional movement

Adaptive Thresholds
The indicator can self-calibrate its detection thresholds based on the instrument's historical behavior, making it adaptable across different markets and asset classes without manual tuning.

Dynamic Range Tracking
During consolidation periods, the indicator tracks the evolving range boundaries:
• Yellow lines show the current range high and low
• Orange lines show the buffered boundaries used for impulse detection
• Range continuously updates as price action develops

Impulse Override System
Multiple configurable conditions can trigger an early exit from consolidation:
• Bar body relative to range size
• Bar range relative to volatility
• Close beyond buffered range boundaries
• Multi-bar cumulative movement

Each condition can be independently enabled or disabled.

Confirmation Layers
Optional confirmation metrics provide additional confidence scoring for the current regime classification. The info panel displays confidence percentage and confirmation status.

Cooldown System
Prevents rapid regime oscillation by enforcing a minimum duration after breakout events before allowing return to sideways classification.


█ HOW TO USE

1 — Add the indicator to your chart. The background color indicates the current regime.

2 — During sideways regimes, observe the yellow range lines to understand the current consolidation boundaries.

3 — Watch for IMP markers which indicate impulse-triggered breakouts.

4 — Use the info panel (top right) to monitor:
Current regime and confidence level
Range boundaries and buffer values
Cooldown status

5 — Adjust impulse detection parameters based on your instrument's volatility characteristics.
Higher values = fewer triggers (more conservative)
Lower values = more triggers (more sensitive)


█ SETTINGS

Threshold Settings
Control the sensitivity of regime classification. Adaptive mode auto-calibrates based on historical data tuned for your instrument.

Impulse Override
Configure which conditions trigger early breakout detection and their respective thresholds.

Multi-Bar Impulse
Settings for detecting breakouts that occur over multiple bars rather than a single impulse candle.

Range Tracking
Configure the establishment period and buffer zone for consolidation range detection.

Cooldown
Set the minimum bars required after a breakout before returning to sideways classification.


█ LIMITATIONS

• The indicator requires sufficient historical data to establish adaptive thresholds.
Initial bars may show less reliable classifications.
• Like all regime detection methods, there is going to be inherent lag in identifying transitions, but this method minimizes it.
The impulse override system helps mitigate this but cannot eliminate it entirely.
• Performance may vary across different timeframes and instruments.
Some parameter tuning is recommended for optimal results.


█ NOTES

This indicator is designed as a filter or context tool to be used alongside other analysis methods. It does not generate trade signals directly but provides market structure context that can inform trading decisions. Typically once a range breaks you can expect directional movement/impulses or higher volatility regimes.