Simplified HMM for Regime DetectionSimplified HMM made possible in PineScript
This is a very basic version of Hidden Markov Model used to detect market regimes. To not confuse with the real model.
There are 3 possible states:
Bull: Positive momentum and strong uptrend.
Bear: Negative momentum and strong downtrend.
Ranging: Weak momentum or indecisive market.
The table shows the current probability of convergence, aka. what's the probability that the market will stay in the same regime and the transition probability.
How to use?
This indicator doesn't generate entry signals and is best used to asses the current trend and trend strength. For more questions, don't hesitate to ask me.
