SignalViper Coil

Coil — Market State Filter for Trend vs Chop

Coil is a market state classification tool designed to help traders avoid low-quality conditions such as sideways price action and unstable transitions between trends. Instead of producing entry or exit signals, Coil focuses on identifying when directional trading is statistically unfavorable and when conditions begin to stabilize.

The script evaluates trend slope behavior relative to recent price movement, allowing it to normalize trend strength across different symbols, timeframes, and volatility environments.

Core Logic & Concepts

Coil classifies the market into one of three structural states:

CHOP
Indicates compressed or overlapping price movement where directional bias is weak and trend-following strategies are prone to whipsaws.

CAUTION
Represents transitional conditions where slope and structure begin to improve but lack sufficient stability for confident continuation.

CLEAR
Signals sustained directional alignment where trend slope is consistent relative to recent price behavior.

These states are derived from slope-normalized trend analysis, which evaluates the quality and persistence of directional movement rather than relying on absolute indicator values.

Indicator Families Used

Coil belongs to the trend-quality and regime-detection category of indicators. While it uses familiar mathematical concepts such as trend slope and smoothing, these elements are not used as standalone signals. Instead, they are normalized and evaluated over time to distinguish stable trends from noisy or mean-reverting environments.

Visual Outputs Explained

Background Highlighting

Gold background: CHOP conditions

Orange background: CAUTION conditions

No background: CLEAR trend conditions

State Change Labels
Labels appear only when the market transitions between structural states, helping traders identify meaningful regime shifts without constant visual noise.

All visual elements directly correspond to the current market state classification.

How to Use Coil

Coil is intended to be used as a decision filter, not a signal generator. Traders commonly use it to:

Avoid initiating trend trades during CHOP conditions

Exercise discretion during CAUTION states

Increase confidence in trend-based strategies during CLEAR states

It pairs naturally with momentum or entry-based tools by providing contextual awareness of market quality.

Why This Script Is Invite-Only

While the underlying concepts of trend and slope are well known, Coil’s value comes from how trend quality is normalized, evaluated, and abstracted into readable market states. This significantly reduces the need for multiple overlapping indicators and helps traders make clearer decisions during live conditions.