> For the complete documentation index, see [llms.txt](https://docs.deryve.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.deryve.xyz/ai-agent/intelligence-pipeline/indicators-and-market-regimes.md).

# Indicators and market regimes

The pipeline uses a shared indicator set. It calculates these readings from recent hourly candles before calling a model.

### Core indicators

| Indicator       | Configuration                     | Primary use                   |
| --------------- | --------------------------------- | ----------------------------- |
| EMA             | 9, 21, 50 periods                 | Trend direction and pullbacks |
| RSI             | 14 periods                        | Momentum and extension        |
| MACD            | 12, 26, 9                         | Momentum acceleration         |
| Bollinger Bands | 20 periods, 2 standard deviations | Volatility range and position |
| ATR             | 14 periods                        | Volatility and stop distance  |
| Momentum        | 10 periods                        | Recent directional change     |

An EMA stack of `9 > 21 > 50` is bullish. The inverse stack is bearish. ATR measures range in price terms and as a percentage of price.

### Regime classification

The classifier combines indicator bias, price range, and volatility. It assigns one regime per cycle.

| Regime                     | Preferred approach                            |
| -------------------------- | --------------------------------------------- |
| Low-volatility compression | Wait for a confirmed expansion                |
| Breakout or breakdown      | Trade confirmed movement beyond a key range   |
| High-volatility expansion  | Reduce size, widen logic, or wait             |
| Strong trend               | Favor continuation after controlled pullbacks |
| Weak trend                 | Require tighter confirmation and smaller risk |
| Range                      | Favor mean reversion at defined extremes      |
| Choppy or uncertain        | Avoid marginal setups                         |

The regime guides strategy selection. It does not predict future price direction.

### Context modules

A skill pack can request price action, trend, momentum, volatility, support and resistance, position context, account risk, and optional external intelligence. Availability depends on the active market and model.


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