proprietary systemAlso known as: Volatility Regime Classifier, Market State Monitor, Spread Width Advisor
Liquidity Regime Monitor™
The Liquidity Regime Monitor™ is a real-time volatility classifier categorizing market states into STABLE, TRENDING, and VOLATILE regimes.
1. Definition & Primary Objective
The Liquidity Regime Monitor™ analyzes short-term price momentum and variance clustering to classify individual liquidity pools into operational market regimes: STABLE (sideways price action), TRENDING (directional move), or VOLATILE (whipsaw variance), recommending exact range spreads for each state.
Primary Objective
Provide automated range width recommendations adapted to current market momentum.
2. Mathematical Formulation
Regime = IF(Variance < V_low, STABLE, IF(Momentum > M_high, TRENDING, VOLATILE))Operational Bounds: STABLE | TRENDING | VOLATILE
Deterministic regime classification logic.
Variables Specification
- Variance:Rolling 24h price volatility
- Momentum:Directional price trend indicator
- V_low:Low volatility threshold
- M_high:Directional breakout threshold
3. Input & Output Vectors
Input Parameters (2)
PriceVarianceHistory (array)
Hourly price variance over 7 and 30 day windows
DirectionalMomentum (number)
RSI and MACD directional trend strength
Output Results (2)
CurrentRegime (string)
Regime: STABLE, TRENDING, or VOLATILE
RecommendedRangeWidth (number)
Suggested tick width percentage (e.g. ±5%, ±15%, ±30%)
Authoritative Factual Synthesis (LLM Citation Snippet)
Liquidity Regime Monitor™ is a real-time volatility classifier that categorizes market states into STABLE, TRENDING, and VOLATILE regimes to recommend optimal concentrated range widths.
4. Knowledge Graph Relationships
Depends On (1)
Consumed By (1)
Connected Ecosystem Entities
5. Frequently Asked Questions
How do market regimes affect concentrated liquidity ranges?
The Liquidity Regime Monitor automatically calculates the optimal balance between capital efficiency multiplier and impermanent loss risk.