Meridian Regime Overlay [JOAT]

JOAT Meridian Regime Overlay [JOAT]

Introduction

JOAT Meridian Regime Overlay is an open-source market context overlay built to classify whether price is operating in directional expansion, balanced auction, or compression.

It is designed as a chart-first regime engine rather than a standalone trigger study.

The script combines local baseline alignment, confirmed higher-timeframe bias, pivot structure, opening-range acceptance, realized volatility state, and session VWAP location into one integrated regime map.

The problem it solves is context.

Many indicators can say whether price is above or below an average.

Far fewer explain whether the move is supported by volatility expansion, structural acceptance, value migration, and higher-timeframe alignment.

Meridian Regime Overlay focuses on that exact problem.

It grades the live auction bar by bar.

It also shows what is supporting the grade.

That makes it useful as a decision filter before interpreting any lower-level signal source.

This script is not trying to predict the future.

Its job is to organize the present market condition.

It helps answer practical questions:

Is the market trending with real conviction?

Is price only drifting above a baseline without expansion?

Is the market compressing near a likely release point?

Is higher-timeframe structure aligned with the current move?

Is price accepting away from value or simply rotating around it?



Core Concepts

1. Baseline Stack Alignment

Fast, slow, and anchor baselines define the local directional stack.

Directional strength improves when those baselines align in sequence and their slopes support the move.

fastBase   = ta.ema(close, fastLen)
slowBase   = ta.ema(close, slowLen)
anchorBase = ta.ema(close, anchorLen)

2. Confirmed Higher-Timeframe Bias

Higher-timeframe context is pulled using confirmed values only.

This avoids depending on unfinished HTF candles.

htfFast   = request.security(syminfo.tickerid, biasTf, ta.ema(close[1], fastLen), lookahead = barmerge.lookahead_on)
htfSlow   = request.security(syminfo.tickerid, biasTf, ta.ema(close[1], slowLen), lookahead = barmerge.lookahead_on)
htfAnchor = request.security(syminfo.tickerid, biasTf, ta.ema(close[1], anchorLen), lookahead = barmerge.lookahead_on)

3. Compression and Expansion State

The script compares Bollinger width and Keltner position to identify squeeze behavior and release behavior.

ADX and realized variance refine the classification.

4. Pivot Structure State

Confirmed pivots define recent structural reference points.

Breaks through those pivots update the structural state.

5. Session VWAP Context

Distance from session VWAP is normalized in ATR units.

This helps reveal whether price is auctioning away from value with intent or just rotating around it.

6. Opening-Range Acceptance

The opening range is tracked and plotted.

Acceptance above or below that range adds useful early-session context.

7. Composite Regime Score

Multiple directional variables are folded into a single regime score.

The score is a context summary, not a standalone trade signal.

8. Confirmed Event Labels

The overlay prints confirmed auction-up, auction-down, and squeeze-release labels directly on the chart.



Features

• Directional regime classification: bullish expansion, bearish expansion, balance, and compression states
• Baseline cloud system: fast and slow cloud for local trend stack
• Confirmed HTF alignment: higher-timeframe bias uses confirmed values only
• Opening-range plotting: high, low, and midpoint are tracked
• Session VWAP context: value migration is integrated into the read
• Pivot structure state: recent structural breaks are tracked
• Compression and release logic: squeeze and expansion state are visualized
• Bar-state coloring: candles transition with regime intensity
• Confirmed event labels: auction and expansion markers print on the chart
• Dashboard: summarizes regime, score, HTF, structure, volatility, and VWAP context

Input Parameters

Trend Engine:

• Fast Baseline
• Slow Baseline
• Anchor Baseline
• Adaptive Mean Length
• Bias Timeframe
• Slope Lookback
• Slope Threshold ATR
• RVOL Impulse Threshold

Volatility Engine:

• ATR Length
• Compression Length
• Band Deviation
• Keltner Length
• Keltner Multiplier
• ADX Length
• ADX Floor
• Expansion Threshold
• Realized Variance Length

How to Use This Indicator

Step 1: Read the regime color, cloud, and dashboard state.

Step 2: Check higher-timeframe alignment before trusting directional continuation.

Step 3: Compare structure and VWAP position to see whether price is accepting away from value.

Step 4: Watch squeeze-release transitions closely because those often precede cleaner directional movement.

Step 5: Use the script as a context filter for other tools rather than as a complete trading system.

Indicator Limitations

• Pivot structure confirms after the pivot fully forms, which is intentional non-repainting behavior
• Higher-timeframe values are confirmed and therefore intentionally delayed
• Compression can persist longer than expected in slow auction environments
• Directional classification does not guarantee continuation

Originality Statement

This publication is original in the way it integrates baseline structure, confirmed higher-timeframe bias, compression state, realized variance, session VWAP, opening-range acceptance, and pivot structure into one unified regime overlay.

The components are not combined arbitrarily.

They all answer the same core question:

what is the current quality of the auction?

Disclaimer

This indicator is provided for educational and informational purposes only.

It is not financial advice.

Market regimes can shift quickly.

All readings are based on historical and current bar data and do not guarantee future performance.

Always use independent analysis and risk management.

Best Use Cases

• Directional trend filtering before using a separate trigger model
• Session context analysis during London and New York activity
• Volatility transition analysis when compression begins to release
• Structure-aware regime filtering for discretionary execution

Interpretation Notes

The strongest readings usually occur when the local stack, confirmed higher-timeframe stack, VWAP position, and volatility expansion agree.

If only one or two of those are aligned, the chart can still move, but the regime read is weaker.

Compression should not be treated as a bearish or bullish state by itself.

It is a warning that the market is withholding directional commitment.

Opening-range acceptance adds value because many directional sessions reveal their intent early.

When price cannot hold outside the opening range, the regime should usually be treated more cautiously.

Publication Notes

This script is intended to be published with a clean chart where the cloud, baselines, opening range, and event labels are clearly visible.

The chart should not be cluttered with unrelated overlays.

If showing an example image, the regime state and at least one structural transition should be identifiable at a glance.

-Made with passion by jackofalltrades