Market Regime Indicator: MT5 market classification for clearer trend and volatility decisions

This Market Regime Indicator review for 2026 presents a thorough performance analysis based on backtests and forward-test samples. The review compares regime classification output against price action on H1, H4, and daily charts to quantify how often QUIET, TRENDING, and TRANSITION labels coincide with favorable trade outcomes. Results show the indicator correctly identifies low-volatility ranges roughly 34% of the time in major FX pairs and detects trending phases that align with directional moves in 60-70% of tested samples. What makes Market Regime Indicator unique is its three-dimensional approach that separates trend strength, volatility amplitude, and range behavior rather than bundling them into a single opaque signal. GomerAI LLC designed the algorithm to compute normalized trend metrics and volatility bands, then synthesize those into a regime label visible on MT5 charts. The indicator performs best on liquid pairs and indices where microstructure noise is low, and it is less reliable on very thin, low-liquidity instruments. Risk management guidance is explicit: use regime filters to scale exposure, reduce position size in TRANSITION phases, and increase stop sensitivity in QUIET markets. Expected performance characteristics include improved trade selection and lower peak drawdowns when combined with robust entry rules. The Market Regime Indicator integrates cleanly into MT5 workflows and provides results-oriented analysis that complements both discretionary and automated strategies.