What this helps answer
What market state is BTC in right now?
Market State
NotifyTrader Market State
Market state is a compact label that describes the current environment: Compression, Expansion, Trend, or Range.
Why it matters
This concept is part of live backend analysis and is used to explain market context, not to produce standalone buy or sell instructions.
Related concepts
Bollinger Bands, ATR, ADX
How it is used in NotifyTrader
NotifyTrader computes market state from Bollinger bandwidth, ATR percentage, ADX, EMA slope, and EMA20 versus SMA50. It also publishes bias, risk, severity, and reasons.
The four states
Compression means volatility is quiet and bands/range are tight. Expansion means volatility is increasing. Trend means directional behavior is stronger. Range means directional evidence is weak.
These states are environment labels. They do not say what action to take.
Bias, risk, and severity
Bias is Bullish, Neutral, or Bearish based mainly on EMA20 versus SMA50 and slope.
Risk is Calm, Elevated, or ExhaustionRisk based on volatility, RSI, ADX, and Bollinger bandwidth. Severity is a 1 to 5 summary of urgency.
How NotifyTrader uses market state
Market state gives the assistant a concise way to explain what kind of environment a symbol is in before discussing indicators or news.
The state engine uses dwell logic to avoid rapid flipping unless evidence is strong.
Questions to ask the assistant
- What market state is BTC in right now?
- Why did ETH move from Compression to Expansion?
- Which watchlist symbols have Elevated risk?
FAQ
Is market state a trading signal?
No. It is an environment label used for research and alert context.
Why use dwell logic?
Dwell logic helps prevent noisy state changes when indicators are near thresholds.