> For the complete documentation index, see [llms.txt](https://help.hydravision.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.hydravision.ai/concepts/concepts/market-regimes.md).

# Market Regimes

Split the market into Long and Short with Regimes

Hydra Vision offers two variants to monitor and act on Market Regimes, chosen with **Market Regime qualification**: *Market Context* (the default) or *MA Higher Time Frame*. It can also be set to *No Regime Check*, which turns the regime filter off. The Regimes split the chart into Buy and Sell zones based on the monitored regime.

The **Buy Low/Sell High** setting (on by default) decides which zone is which. When it is on, buys are allowed in the lower zone and sells in the upper zone. When it is off, this is inverted: buys in the upper zone and sells in the lower zone.

Existing Buy/Sell signals for new grids will be filtered based on these regimes when enabled.

<figure><img src="https://2989346082-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBb0Zs9djZNNrYMUqn2yn%2Fuploads%2F4AYiUNTC4loDntfkllVP%2FAll%20Market%20Regimes.png?alt=media&amp;token=11138370-dfd8-468e-9170-461b2b80281a" alt=""><figcaption><p><strong>Rolling 3 month Market Context and 100 Period Moving Average - 2 Regime variants</strong></p></figcaption></figure>

## Market Context

The rolling Market Context rolls the Peak and Trough for a set number of months (configured) on a rolling basis. 3 Months is the default, and we can extend this through to 12 months for an absolute extreme view, however this starts to become impractical for short term trading decisions.

Market Context takes nothing more into account other than the peak or trough, and is a simple way of splitting a market window into Buy/Sell zones.

The current price is scored from -100 (at the trough) to +100 (at the peak), with 0 at the midpoint. Two bands sit on top of the Buy/Sell split:

* **Neutral band:** between -10 and +10, price is too close to the middle of the range to favour either side, so no new grid opens on either side.
* **Extreme bands:** beyond +80 or below -80, price is at the very edge of the range. A market extending that strongly is treated as unsafe to trade, so the side that would otherwise be allowed is blocked as well, and no new grid opens.

## High Timeframe Moving Average

Configured as an input, the Market Regime MA uses a higher timeframe to determine our long term outlook on the market. By default it is a 50-period exponential moving average (EMA) on the H4 chart: the timeframe is set with **Market Regime Timeframe**, and the period is shared with **MA Period for Anchor Vetoes**. The 100-period moving average in the image above is only an illustration. Like Market Context, we use the MA to split the market into Buy/Sell Zones: with **Buy Low/Sell High** on, buys are allowed below the MA and sells above it.