Permutation Entropy Regime Indicator
An information-theory regime classifier for TradingView, built on Bandt-Pompe entropy.
A Pine v6 indicator that uses ordinal-pattern (permutation) entropy to classify trending versus choppy regimes, with a moderation-safe description.
- Bandt-Pompe permutation-entropy regime classification
- Distinguishes trending from choppy conditions
- Published as Permutation Entropy Regime [Jayadev Rana], MPL-2.0
- Complete, moderation-safe TradingView description
An original Pine v6 indicator that classifies market regime using permutation entropy — the Bandt-Pompe method from information theory. By measuring the entropy of ordinal patterns in recent price, it distinguishes structured, trending conditions from noisy, choppy ones, giving a principled read on when trend-following or mean-reversion logic is more appropriate. It is published under my TradingView attribution convention as Permutation Entropy Regime [Jayadev Rana] and released under MPL-2.0, with a complete, moderation-safe publish description.
The appeal is that the signal comes from a real, citable statistical idea rather than yet another moving-average blend. It is open-source, so the logic is fully readable. Grounding the signal in a citable statistical method, and releasing it open-source, means the logic can be checked rather than taken on faith, which is exactly the standard a regime tool should be held to.
Analysis tool, not financial advice.
How it works
- Read recent price bars
- Compute ordinal-pattern permutation entropy
- Compare entropy against thresholds
- Classify trending versus choppy regime
- Display regime state on the chart
Software and automation are infrastructure, not financial advice. No performance guarantees. Every live system needs staged testing, risk limits, and owner approval.