# Market Trend Analysis - Multi-Timeframe Trend and Range Classification **Last Updated**: 2026-03-17 **Version**: 1.0.0 ## How It Works ### Open Market Trend Analysis Navigate to the Market Trend Analysis page from the sidebar. The interface provides multi-panel configuration for analyzing whether a market is trending or ranging across different timeframes using technical indicators. ### Select Target Asset and Date Choose the asset to analyze using the company search field and set the analysis date. The system will load historical price data up to this date for all configured timeframes. ### Configure Macro and Micro Timeframes Set two analysis timeframes: macro (e.g., daily or weekly) for the broader market context, and micro (e.g., hourly or 15min) for the immediate trading environment. Multi-timeframe analysis reveals whether short-term and long-term conditions align. ### Add Trend Indicators Select trend-detection indicators from the library (ADX, moving average slope, Aroon, MACD histogram, linear regression slope). Each indicator contributes a vote toward the trending or ranging classification. Configure parameters like lookback period for each indicator. ### Add Range Indicators Select range-detection indicators (Bollinger Band width, ATR percentile, Hurst exponent, RSI mean-reversion score). Range indicators identify periods of sideways consolidation where mean-reversion strategies outperform momentum approaches. ### Execute the Multi-Indicator Analysis Click Start Generate to run the analysis. The engine evaluates each configured indicator on both timeframes, generates individual trend/range scores, and produces an aggregate classification with a confidence percentage based on indicator consensus. ### Review Dashboard Results Examine the results dashboard showing: overall market classification (trending/ranging), confidence score, individual indicator readings on each timeframe, macro vs. micro alignment status, and historical classification chart showing how the regime has evolved over recent periods. ### Apply Classification to Strategy Selection Use the trend/range classification to select appropriate strategies. When the analysis confirms a strong trend, deploy momentum and breakout strategies. When ranging conditions are detected, switch to mean-reversion, support/resistance, and channel-based strategies. > Market Trend Analysis uses consensus-based multi-indicator classification to determine whether the market is in a trending or ranging state, helping you select the optimal strategy type for current conditions. ## Tips & Best Practices - Always use at least 3-4 indicators from different families (one momentum-based like ADX, one volatility-based like Bollinger width, one statistical like Hurst exponent) to avoid single-indicator bias in your classification. - When macro and micro timeframes disagree (e.g., daily trending but hourly ranging), the market is likely in a pullback within a larger trend. This is a high-value setup for trend-continuation entries at micro-timeframe support levels. - Run the analysis regularly, not just once. Market regimes shift over time, and a classification that was valid last week may no longer hold. Weekly re-analysis for position traders and daily for swing traders is recommended. - Cross-reference Market Trend Analysis results with HMM Predictor output. When both independent methods agree on the market state, the classification is significantly more reliable than either tool alone. ## Frequently Asked Questions ### What is the difference between trend indicators and range indicators? Trend indicators measure directional persistence and momentum strength. For example, ADX above 25 suggests a strong trend, and moving average slope measures the rate of directional movement. Range indicators measure consolidation, mean-reversion tendency, and bandwidth contraction. Bollinger Band width shrinking indicates compression, low ATR percentile signals reduced volatility, and a Hurst exponent near 0.5 suggests random walk behavior typical of ranging markets. ### How does the consensus classification work? Each configured indicator casts a weighted vote for either trending or ranging based on its current reading and threshold values. The aggregate classification is determined by the majority vote, and the confidence percentage reflects the degree of consensus. For example, if 4 out of 5 indicators vote trending, the classification is Trending with approximately 80% confidence. Higher consensus means more reliable classification. ### Why do I need both macro and micro timeframes? Macro and micro timeframes reveal the hierarchical structure of market conditions. A daily chart may show a clear uptrend while the hourly chart shows temporary ranging or pullback. Understanding this alignment is critical: strategies that trade in the direction of the macro trend during micro-timeframe pullbacks historically outperform strategies that ignore multi-timeframe context. ### How often should I re-run the analysis? Re-analysis frequency should match your trading timeframe. Day traders should run the analysis daily before the trading session. Swing traders should update weekly. Position traders can re-analyze bi-weekly or monthly. Additionally, re-run after any significant market event (earnings, central bank decisions, geopolitical events) that might trigger a regime change. ### Can I use the results to automatically switch strategies? The analysis results can inform your strategy selection in other platform modules like the Arena. While the platform does not automatically switch strategies based on trend analysis output, you can use the classification as a manual filter: only deploy momentum strategies when Trending is confirmed, and switch to mean-reversion when Ranging is detected. ## Important Notes > Market trend classification is based on historical indicator readings and may lag actual regime transitions. Markets can shift from trending to ranging conditions rapidly, especially around major economic events. Use classifications as analytical guidance, not as sole decision criteria. --- Source: https://stratcraft.ai/help/market-trend-analysis/