Market DNA Explained

The Market DNA panel is a set of structural metrics published alongside the market condition label for each evaluation cycle. Rather than showing only a single label (CLEAR, TENSE, WAIT, etc.), the DNA panel exposes the underlying inputs that contributed to that label.

These metrics are available for BTC via the public API and displayed on the Live page and asset detail view. They are derived from completed-candle data — the same data source used in the closed-candle evaluation methodology.

Trend strength measures the degree of directional consistency in the evaluated price series. A higher value indicates that price has moved in a sustained direction across the evaluation window; a lower value indicates a more choppy or ranging structure.

High trend strength

Price has moved with consistent directionality across the evaluation window. This is a condition that may support the market condition label CLEAR or contribute to a setup signal — but is not a standalone signal by itself.

Low trend strength

Price has moved in a directionless or reversal-heavy pattern. This typically contributes to TENSE, WAIT, or NO TRADE conditions.

What it is not

Trend strength is not a prediction of future direction. A strong upward trend can reverse. A low trend strength value does not mean an entry is due.

ATR % is the Average True Range expressed as a percentage of the current price. It measures recent volatility — the typical magnitude of price movement over the evaluation period.

High ATR %

The asset has been moving by a large percentage per candle relative to its current price. This raises stop distances and reduces position size for a given risk budget.

Low ATR %

The asset has been moving by a smaller percentage per candle. Tighter recent volatility, which can indicate consolidation or reduced market activity.

Relevance for setups

ATR % informs the natural stop distance required to avoid being stopped by normal noise. A stop that is smaller than the ATR is likely to be hit by routine volatility, regardless of direction.

Entropy, in the context of Market DNA, measures the informational disorder of the price series. It is derived from the distribution of returns over the evaluation window.

High entropy

The price series is highly disordered — movements are random-seeming, with no clear pattern. High entropy typically contributes to TENSE or NO TRADE conditions. It is harder to build a structured plan in high-entropy markets.

Low entropy

The price series has more structure and predictability — movements are more consistent and less noisy. Lower entropy contributes to conditions where setup publication is more likely.

Entropy and safe mode

If entropy exceeds a threshold, the engine may withhold setup publication or contribute to a WAIT state, even if trend strength is present. Trend without structure is a noisy signal.

Volume Z-score measures how unusual the current trading volume is relative to the historical baseline. It is expressed in standard deviations from the mean.

Positive Z-score

Volume is above the historical baseline. Elevated activity in the evaluation window. Can indicate increased participation, news-driven movement, or institutional activity.

Negative Z-score

Volume is below the historical baseline. Below-average activity. Can indicate thin market conditions, which may be associated with wider spreads or less reliable price formation.

Z-score ≠ direction

High volume Z-score does not indicate which direction the market is moving. It measures the magnitude of participation, not the direction.

The candle pressure proxy measures the directional pressure embedded within candle bodies relative to their total range. It is a structural observation derived from OHLC data — it is not an order flow metric and does not reflect real-time trade-level data.

What it measures

The proportion of each candle's movement (high-to-low range) that is captured in the body (open-to-close direction). A candle that closes near its high has strong bullish body pressure; one that closes near its low has bearish body pressure.

Proxy, not certainty

Body pressure is a structural observation at the candle level. It reflects where price settled within the range of each candle — it does not confirm that a particular direction is dominant at a market-microstructure level.

Not order flow

Candle pressure proxy is a structural candle metric. It is not derived from exchange order book data, tape data, or real-time trade flow. Do not interpret it as order flow analysis.

The taker participation ratio reflects the share of trade volume that is executed by market takers (aggressive buyers and sellers) relative to the total. It is available where exchange data provides sufficient taker/maker volume breakdown.

High taker participation

A larger share of volume is being transacted by aggressive market participants. Typically associated with faster-moving, more decisive market conditions.

Low taker participation

A smaller share of volume is aggressive. Markets may be more passive or awaiting a catalyst.

Data availability

The taker participation ratio is published where the underlying data source provides it. If unavailable for a given evaluation cycle, the field is withheld rather than estimated.

Alongside the Market DNA metrics, two additional fields provide context for how the current condition label was produced:

Freshness

FRESH, STALE, or NO_DATA. Reports the age of the underlying data relative to the expected evaluation threshold. A STALE freshness label means the DNA metrics themselves are derived from older data.

State reasons

A list of machine-produced reason codes for the current market condition, such as ATR_OK, ENTROPY_LOW, DATA_STALE, or TREND_STRONG. These are structured annotations that contributed to the condition label.

Reading state reasons

State reasons are additive — multiple reasons may be present. They are not ranked by importance. A single reason does not override the overall condition label; the condition is the result of the full evaluation.