📈Market States

The Market State engine analyzes all available data and assigns one of the following labels. Each state comes with an interpretation message and a sub-message providing actionable context.

Directional States (Score-Based)

These are determined by the Bias Score:

State	Score Range	Meaning
STRONG_BULL	+75 or higher	Multiple indicators aligned bullish with strong momentum
BULLISH	+50 to +74	Clear buyer control
LEAN_BULL	+25 to +49	Slight bullish edge — wait for confirmation
NEUTRAL	-24 to +24	No clear directional bias — range-bound or mixed signals
LEAN_BEAR	-25 to -49	Slight bearish edge — wait for confirmation
BEARISH	-50 to -74	Clear seller control
STRONG_BEAR	-75 or lower	Multiple indicators aligned bearish with strong momentum

Special States (Crypto Flow-Based)

When crypto flow data is available, the engine can detect higher-priority structural events:

State	What's Happening	What It Means
SHORT_SQUEEZE	Price rising + OI declining + CVD rising	Shorts are being forced out. Squeeze momentum can accelerate price sharply higher.
LONG_LIQUIDATION	Price falling + OI declining + CVD falling	Longs are being liquidated. Cascade events can push price much lower rapidly.
ACCUMULATION	Price flat + OI rising + low volatility	New positions are building in a range. A breakout is likely forming.
DISTRIBUTION	Price flat/high + Spot CVD falling	Smart money exiting at highs. Potential breakdown risk.
DIVERGENCE	Spot CVD and Perp CVD trending in opposite directions	Disconnect between real buyers and leveraged traders. Often a precursor to a move.
FUNDING_EXTREME_LONG	Funding rate extremely positive	Longs are overcrowded and paying high fees. Reversal risk elevated.
FUNDING_EXTREME_SHORT	Funding rate extremely negative	Shorts are overcrowded. Squeeze risk elevated.

Tip: Special states take priority over score-based states when detected. A SHORT_SQUEEZE alert matters more than the score reading +40.

State Stability

To prevent the state from flickering rapidly between labels, there is a State Stability setting (default: 1 bar). A new state must persist for the specified number of bars before it officially switches. You can increase this if you prefer fewer, more confident state transitions.

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Confluence Components

The Bias Score is built from a set of individual components. Each one contributes a weighted vote toward the bull or bear side. You can enable or disable any component under the ⚡ Confluence Scoring input group.

Technical Components

Component	What It Measures
Signal	EZ Algo's core directional signal (BUY / SELL), with extra weight for strong signals
Quick Trend	Short-term trend direction — responsive to recent price action
Macro Trend	Long-term structural trend — shows the big-picture direction
RSI	Momentum gauge. Above 50 favors bulls, below 50 favors bears. Graduated scoring at extremes.
OBV	On-Balance Volume trend — confirms whether volume supports the current price direction
Stoch Wave	Momentum oscillator — detects overbought/oversold conditions and momentum shifts
OSC Candle	Candle momentum — identifies trend strength and potential reversal setups
OSC Trend	Longer-term oscillator — adds trend confirmation from a different angle
Volume %	Volume thrust — measures buying vs. selling pressure over recent bars

Flow Components (Crypto Only)

Component	What It Measures
OI Trend	Open Interest direction — context-aware (rising OI in an uptrend is bullish; rising OI in a downtrend is bearish)
CVD Trend	Cumulative Volume Delta — shows whether buyers or sellers are more aggressive
Funding	Funding rate sentiment — negative funding leans bullish (shorts crowded), positive leans bearish (longs crowded)

You can toggle each component on or off to customize what feeds into your score. For example, if you only trust price action, turn off OBV and Volume %. If you're focused on flow, enable Flow Only scoring mode.