> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/risk-and-portfolio-management/volatility-regime-model/features.md). # Features Instead of relying on basic VIX oscillators, the Volatility Regime Model uses advanced persistence tracking and cross-asset confirmation. Below are the unique mechanisms driving this framework: * **Regime Classification**: Categorizes volatility into 4 distinct states: Low Vol (Stable), Mid Vol (Fragile), High Vol (Stress), and Crisis Cluster. * **Persistence Tracking**: Measures how many consecutive days the market has spent in an elevated volatility state, adjusting the trading bias based on time-decay (Fade Noise -> Edge Decaying -> Defensive). * **Cross-Asset Validation**: Automatically cross-references the MOVE Index (bond volatility) and High-Yield Credit Spreads (HY vs IG). If these external markets are widening alongside the VIX, the systemic stress is confirmed. * **Dynamic Trading Bias**: Synthesizes the regime, persistence, and validation layers to output a clear, actionable trading bias on the dashboard. * **Visual Ribbon & Dashboard**: Plots the VIX line with dynamic color-coding, a background regime ribbon, and a real-time dashboard summarizing the exact market state. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.candelacharts.com/investing/risk-and-portfolio-management/volatility-regime-model/features.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.