Market Highway
Adaptive Kalman Road, Three-State Regime Classifier & With-Trend Entry Engine
How the Algorithm Works
Market Highway fits an adaptive Kalman filter to price: a "road" that carries both a level and a velocity, so it rides through noise but turns quickly on a real move. That velocity, together with how straight the road actually is over a slope window, is what sorts the market into one of three regimes: Trending Up (gold), Trending Down (crimson), or Ranging (grey). A regime only starts when the slope is strong and the line genuinely fits, and it exits well before it snaps, so the colour isn't flickering on every wobble. Around the road sit two ATR-scaled lanes whose width expands on a volatility shock and relaxes back gradually. Separately, an Ornstein-Uhlenbeck model is re-fit every bar to price's deviation from the road: it measures how persistently price stays on one side (trend behaviour) versus how fast it snaps back (range behaviour), and reports that as a deviation half-life and a stretch reading in σ. Those two engines drive three kinds of on-chart marker, each printed only on bar close and each with its own dotted invalidation level (the price where that idea is wrong): BREAK for a confirmed breakout through the outer lane during volatility expansion, a ◆ for a with-trend pullback that snapped back off the inner lane and held through the confirmation window, and a ✕ for a counter-trend fade at the verge of a range. A volatility squeeze is shaded on the chart so you can see when the market is coiled before one fires. Two dropdowns run the whole thing: Trading style (Scalp / Swing / Position) sets the speed and timeframe fit, Signal filtering (Strict / Normal / Lenient) sets how hard the markers are screened, with full Advanced overrides underneath. An optional higher-timeframe filter only allows signals that agree with the trend above. Everything commits on bar close; the road, lanes and regime colour redraw on the live forming bar (inherent to any adaptive filter) and settle once it closes. Historical bars never change.
Read the Full Guide →Core Feature Matrix
Asset & Timeframe Recommendations
Scalp style on 1-5 minute, Swing style on 15-minute to 1-hour. Crypto's volatility shocks are exactly what the adaptive lane width is built for. Keep Signal filtering on Normal or Strict on the lower timeframes.
Swing style on 15-minute to 4-hour across the London and New York sessions. Set the higher-timeframe filter to Daily so range-bound Asian hours don't produce with-trend signals against the bigger picture.
Scalp or Swing style on 3-minute to 15-minute. The volatility-squeeze shading is useful into the cash open. It marks the coil before an expansion move.
Swing style on 1-hour, or Position style on 4-hour and Daily for trend-following with fewer, cleaner signals.
Recommended Parameter Presets
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