BT State, Structure & Energy

BT State, Structure & Energy

BT State, Structure & Energy is a market context framework — not a signal generator.
It helps traders understand when meaningful outcomes are possible, before interpreting absorption, aggression, or entries.

This tool enforces the correct analytical hierarchy used by professional traders.

---

Core Concept

Markets resolve in layers, not signals.

This indicator separates volatility behavior into three distinct components:

• State (BBWP) → Can something happen?
  
• Structure (Keltner Width %) → Is the market opening or compressing?
  
• Energy (ATR %) → Is there enough participation to traverse structure?
  

Most traders invert this sequence and fail.
This framework does not.

---

Indicator Mapping

• BBWP → State
  Defines volatility regime and expansion permission.
  
• Keltner Width % → Structure
  Tracks the opening and closing of the market’s price envelope.
  
• ATR % → Energy
  Measures the arrival and decay of kinetic participation.
  

These are non-directional metrics. They describe environment, not bias.

---

Visual Design

• BBWP Columns (Heatmap)
  Low opacity columns show volatility state without overpowering price.
  
• Compression Background
  Subtle shading highlights regimes where expansion is statistically unlikely.
  
• Structure Line (KWP)
  User-defined base color with light/dark slope variants.
  
• Energy Line (ATR %)
  User-defined base color with light/dark slope variants.
  

Brightness reflects slope (rising or falling), not direction.

---

How to Use

• Start with State
  If volatility permission is closed, most signals will fail.
  
• Then read Structure
  Structure often opens before state transitions.
  
• Then read Energy
  Energy confirms whether structure can be traversed.
  
• Only then interpret Absorption
  Absorption matters when expansion is allowed.
  
• Finally read Aggression
  Aggression answers who is winning right now.
  

Correct hierarchy:

Market State → Absorption → Aggression

---

Best Practices

• Do not use this as an entry signal
  
• Use it to filter false breakouts and chop
  
• Pair with absorption and order-flow tools
  
• Use higher opacity on HTF, lower on LTF
  
• Adjust slope length per timeframe (longer on HTF)
  

---

Who This Is For

This tool is designed for traders who want to:

• Understand market condition before acting
  
• Avoid chasing activity in compressed regimes
  
• Trade with context instead of indicators in isolation
  

If you are looking for buy/sell arrows, this is not the tool.
If you want to know where you are, this is exactly the tool.

---

BT State, Structure & Energy
Understand the environment before interpreting the tape.