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.
Automation is infrastructure, not financial advice. No profit guarantees. Every live system needs staged testing, risk limits, and owner approval.