> 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/overview.md).

# Overview

Volatility Regime Model Quick Specs

Volatility is approached as a series of regimes, not as absolute levels.&#x20;

<figure><img src="https://3870127617-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCBVnUk5c5TVytimjy972%2Fuploads%2FhPMwRIXeprmWrASWYGfU%2Fdocs-volatility-regime-model-001.png?alt=media&amp;token=87d9d90e-9c35-4e3a-9d34-1fcfe1ab4bd4" alt=""><figcaption></figcaption></figure>

This framework identifies, validates, and executes transitions between market states.&#x20;

{% content-ref url="/pages/AqI1b74ZyA3osYU6vGQy" %}
[Features](/investing/risk-and-portfolio-management/volatility-regime-model/features.md)
{% endcontent-ref %}

{% content-ref url="/pages/QoKTF9DEAs9ToIFydKDK" %}
[Usage](/investing/risk-and-portfolio-management/volatility-regime-model/usage.md)
{% endcontent-ref %}

{% content-ref url="/pages/uh1C6ffnTKcukD0tkvbJ" %}
[Confluences](/investing/risk-and-portfolio-management/volatility-regime-model/confluences.md)
{% endcontent-ref %}

{% content-ref url="/pages/eYdcrCa3rKcQHdrR5PXx" %}
[FAQs](/investing/risk-and-portfolio-management/volatility-regime-model/faqs.md)
{% endcontent-ref %}

By utilizing the VIX index, measuring the persistence of volatility shocks, and validating with the MOVE Index (bond volatility) and High-Yield Credit Spreads, the model categorizes market conditions into four distinct states: Low Vol (Stable), Mid Vol (Fragile), High Vol (Stress), and Crisis Cluster.


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