Trends and Ranges Need Different Logic
A strategy that works in a directional market can fail in consolidation. Regime detection should therefore be part of the decision pipeline rather than an afterthought.
Trend as structure
Instead of relying only on an indicator, trend can be described through successive significant highs and lows, displacement and the ability of price to hold beyond prior structure.
Range as structure
A range has repeated interaction with boundaries and limited directional follow-through. Near its center, reward-to-risk often deteriorates; near a validated boundary, a level-based setup may become measurable.
Regime uncertainty is a valid state
Do not force every market into TREND or RANGE. Add UNKNOWN/TRANSITION and let the bot stand aside when classification confidence is insufficient.
Implementation checklist
Automation principle: every visual concept should have explicit inputs, thresholds, states and an invalidation rule before it becomes trading code.
Educational content for software design and trading-system research. Not investment advice. No profit is guaranteed.