Market Energy is 2AiTrading's proprietary market-measurement framework. It describes the balance and intensity between bullish and bearish market activity within a standardized coordinate system.
Market Energy converts information from completed candles into a normalized value ranging from −100% to +100%, providing a consistent way to describe Market State across different symbols and timeframes.
Market Energy is a measurement — not a price forecast, an expected-return model, or a trading recommendation.
A Market Energy value should be interpreted as a description of the currently measured market condition — not a prediction of what price must do next.
2. What Market Energy Measures
At a conceptual level, the framework: (1) evaluates the bullish and bearish components in a candle; (2) incorporates information from both the current candle and recent behavior; (3) incorporates relative volume conditions; (4) applies adaptive smoothing and normalization; (5) converts the result into the standardized −100%…+100% scale.
Positive values → the measured balance is on the bullish side; higher is progressively stronger.
Negative values → the bearish side; more negative is progressively stronger.
Around 0 → neither side is dominant enough to place the market in a directional state.
The % here is a POSITION on the −100% to +100% scale — not a probability, and not a percentage of any quantity. Energy = 60% means it reached the 60% level on the scale, not "60% probability".
Zero is a measurement reference point, not a prediction that price will stay unchanged.
3. What Market Energy Does Not Mean
Market Energy does not represent: the probability that price will rise or fall; expected return; a price target; a buy or sell signal; a recommendation to enter or exit; certainty that a trend will continue; or certainty that an extreme condition will reverse.
For example, Market Energy = +70% does not mean "70% probability that price will rise". Likewise −70% does not mean "70% probability of a fall". Market Energy describes the measured market state at a specific completed-candle observation.
4. Input Data
The framework is calculated from candle data, using Open, High, Low, Close, Volume, associated with completed candles on the relevant timeframe. It evaluates price structure together with volume information, rather than treating volume as an independent trading signal.
Data is sourced from data providers and exchange feeds. Where volume is unavailable for certain instruments (e.g. some FX pairs), the framework relies on price-structure components. Only completed candles with valid data enter the canonical record.
The precise transformations, adaptive parameters, and internal mathematical functions are proprietary (see §13).
5. Calculation Timing · Immutability
Market Energy is based on completed candles. Each completed candle produces one observation: Symbol + Timeframe + Completed Candle → Market Energy → Market State. Incomplete candles do not produce a canonical record.
Immutability (no repainting): once a candle has closed and been sealed, the Market Energy and Market State of that observation are immutable — preserved exactly as of candle close and not rewritten according to the market's current state. Historical snapshot pages reflect precisely the observation recorded at that time. 2AiTrading does not repaint historical values.
6. The Seven Market Energy States
The continuous −100%…+100% scale is divided into seven canonical states by symmetric thresholds, identical across every symbol and timeframe:
State
Market Energy range
Bull Extreme
+74.5% → +100%
Bull Critical
+60% → +74.5%
Bull Bias
+20.88% → +60%
Neutral
−20.88% → +20.88%
Bear Bias
−60% → −20.88%
Bear Critical
−74.5% → −60%
Bear Extreme
−100% → −74.5%
Bull/Bear Bias — a directional condition where one side's energy has moved sufficiently beyond Neutral. Does not guarantee price will rise/fall.
Bull/Bear Critical — a higher-intensity condition beyond Bias. Not automatically continuation or reversal.
Bull/Bear Extreme — the outermost states. "Extreme" describes the position of the measurement; it does not mean an immediate reversal is certain.
Neutral — the central region. It does not mean volatility must be low.
The ±100% bounds are the edges of the scale (asymptotic values), not levels each candle will reach exactly.
7. State Transitions
A transition occurs when the Market Energy of a completed candle crosses a state boundary (e.g. Neutral → Bull Bias; Bull Bias → Bull Critical). A transition describes a change in the measured condition; it is not itself a trading signal. Distinguish movement of Market Energy within the same state (e.g. +42% → +43%) from a transition across a boundary.
8. Consistency Across Markets and Timeframes
A core design objective is to express every market within the same −100%…+100% coordinate system, making it possible to view different markets in one common framework — e.g. one symbol across timeframes, or a symbol alongside a broad market index.
However, a common coordinate system is not a relative-performance ranking. For example, Symbol A = +60% and Symbol B = +30% does not automatically mean "A will outperform B" — it only shows their respective positions in the same measurement system. This is not a relative-strength model unless a separate methodology explicitly defines and validates one.
9. Analysis Methodology
Analysis pages are based on canonical Market Energy observations tied to completed candles (symbol · timeframe · timestamp · Market Energy value · Market State). Analysis may describe: current Market State; Market Energy; change from the previous observation; state duration; recent transition; historical context.
Analysis does not independently recalculate Market Energy — the canonical system is the source of truth. An Analysis page is an interpretation of a recorded observation, not an independent forecasting model.
10. Research Methodology
Research uses historical Market Energy and Market State records to study how defined states have behaved in the past. Research provides historical context — historical statistics should not be read as future probabilities. Current areas include Zone Transitions and Time in Zone.
Based only on completed-candle observations (immutable records).
The currently ongoing occurrence is clearly distinguished from completed occurrences in summary statistics.
Each Research page discloses its scope: symbol · timeframe · observation period · number of observations/occurrences.
Results may differ across symbols/timeframes because available history differs.
Zone Transitions reports the historical proportion of observations moving from one state to an adjacent state. For example "Upward: 61% · Downward: 39%" means that, within the defined historical sample, 61% of qualifying transitions were upward. This is a count of how often it happened historically, not "61% probability the market will move up from here".
Boundary states: no state exists above Bull Extreme or below Bear Extreme — so a one-directional transition percentage at a boundary should not be read automatically as a predictive reversal probability.
Time in Zone measures how long historical occurrences remained within a state, and may include: number of completed occurrences · average · median · maximum · current duration. A long current duration relative to history does not mean the state must end immediately.
11. Historical Statistics Are Not Forecasts
Historical frequency is descriptive evidence, not a guaranteed future probability.
Market structure, volatility, liquidity, and participation can all change. Two observations sharing the same Market State may still produce very different subsequent price behavior. Use Research to understand the historical characteristics of a state, rather than to convert Market Energy mechanically into a trade.
12. Important Limitations
Market conditions change — historical relationships may weaken, disappear, or behave differently.
A normalized scale does not remove market differences — markets differ in liquidity, volatility, trading hours, price formation, and history.
Sample sizes vary — a statistic from a large sample is not equivalent to one from a much smaller sample.
Statistical frequency does not imply certainty — historical rates do not guarantee repetition.
Extreme does not automatically mean reversal — Bull/Bear Extreme are outer states, not mechanical buy/sell signals.
Not a standalone trading system — Market Energy does not incorporate every factor relevant to a decision.
13. Proprietary Components
2AiTrading discloses enough for users to understand: what is measured, what data categories are used, when observations are produced, how to interpret Market Energy and Market State, how to read Research statistics, and the limitations. Components that remain proprietary include (but are not limited to): the exact formulas; internal transformations; adaptive-parameter logic; calibration details; model weights; source code; and proprietary feature construction. Non-disclosure of these does not change the interpretation rules above.
14. Versioning & Changes
2AiTrading maintains a versioned methodology. A review is triggered by material changes affecting: the calculation of Market Energy; the normalization framework; state thresholds; the meaning of a state; calculation timing; the treatment of historical observations; Research sampling; Research outcome definitions; or the interpretation of published statistics. Presentation-only changes do not necessarily constitute a new version.
Version
Effective date
Material change
1.0
24 Aug 2026
Initial public methodology
15. How to Use Market Energy
A useful approach is to ask three questions — kept separate from "What will price do next?": (1) Where is the market now? → current Market Energy and Market State; (2) What has changed? → changes in Energy, transitions, multi-timeframe context; (3) How has this type of state behaved historically? → the relevant Research statistics.
16. Disclaimer
2AiTrading provides market analytics, measurements, historical research, and educational information. Nothing in Market Energy, Market State, Analysis, Research, or related content should be interpreted as personalized investment advice, an offer or solicitation, or a recommendation to buy, sell, or hold any financial instrument. Trading and investing involve risk. Historical observations and statistical relationships may not persist in the future. Users are responsible for their own decisions.
1. Overview
Market Energy is 2AiTrading's proprietary market-measurement framework. It describes the balance and intensity between bullish and bearish market activity within a standardized coordinate system.
Market Energy converts information from completed candles into a normalized value ranging from −100% to +100%, providing a consistent way to describe Market State across different symbols and timeframes.
Market Energy is a measurement — not a price forecast, an expected-return model, or a trading recommendation.
2. What Market Energy Measures
At a conceptual level, the framework: (1) evaluates the bullish and bearish components in a candle; (2) incorporates information from both the current candle and recent behavior; (3) incorporates relative volume conditions; (4) applies adaptive smoothing and normalization; (5) converts the result into the standardized −100%…+100% scale.
Zero is a measurement reference point, not a prediction that price will stay unchanged.
3. What Market Energy Does Not Mean
Market Energy does not represent: the probability that price will rise or fall; expected return; a price target; a buy or sell signal; a recommendation to enter or exit; certainty that a trend will continue; or certainty that an extreme condition will reverse.
For example, Market Energy = +70% does not mean "70% probability that price will rise". Likewise −70% does not mean "70% probability of a fall". Market Energy describes the measured market state at a specific completed-candle observation.
4. Input Data
The framework is calculated from candle data, using Open, High, Low, Close, Volume, associated with completed candles on the relevant timeframe. It evaluates price structure together with volume information, rather than treating volume as an independent trading signal.
Data is sourced from data providers and exchange feeds. Where volume is unavailable for certain instruments (e.g. some FX pairs), the framework relies on price-structure components. Only completed candles with valid data enter the canonical record.
The precise transformations, adaptive parameters, and internal mathematical functions are proprietary (see §13).
5. Calculation Timing · Immutability
Market Energy is based on completed candles. Each completed candle produces one observation: Symbol + Timeframe + Completed Candle → Market Energy → Market State. Incomplete candles do not produce a canonical record.
Immutability (no repainting): once a candle has closed and been sealed, the Market Energy and Market State of that observation are immutable — preserved exactly as of candle close and not rewritten according to the market's current state. Historical snapshot pages reflect precisely the observation recorded at that time. 2AiTrading does not repaint historical values.
6. The Seven Market Energy States
The continuous −100%…+100% scale is divided into seven canonical states by symmetric thresholds, identical across every symbol and timeframe:
The ±100% bounds are the edges of the scale (asymptotic values), not levels each candle will reach exactly.
7. State Transitions
A transition occurs when the Market Energy of a completed candle crosses a state boundary (e.g. Neutral → Bull Bias; Bull Bias → Bull Critical). A transition describes a change in the measured condition; it is not itself a trading signal. Distinguish movement of Market Energy within the same state (e.g. +42% → +43%) from a transition across a boundary.
8. Consistency Across Markets and Timeframes
A core design objective is to express every market within the same −100%…+100% coordinate system, making it possible to view different markets in one common framework — e.g. one symbol across timeframes, or a symbol alongside a broad market index.
However, a common coordinate system is not a relative-performance ranking. For example, Symbol A = +60% and Symbol B = +30% does not automatically mean "A will outperform B" — it only shows their respective positions in the same measurement system. This is not a relative-strength model unless a separate methodology explicitly defines and validates one.
9. Analysis Methodology
Analysis pages are based on canonical Market Energy observations tied to completed candles (symbol · timeframe · timestamp · Market Energy value · Market State). Analysis may describe: current Market State; Market Energy; change from the previous observation; state duration; recent transition; historical context.
Analysis does not independently recalculate Market Energy — the canonical system is the source of truth. An Analysis page is an interpretation of a recorded observation, not an independent forecasting model.
10. Research Methodology
Research uses historical Market Energy and Market State records to study how defined states have behaved in the past. Research provides historical context — historical statistics should not be read as future probabilities. Current areas include Zone Transitions and Time in Zone.
Zone Transitions reports the historical proportion of observations moving from one state to an adjacent state. For example "Upward: 61% · Downward: 39%" means that, within the defined historical sample, 61% of qualifying transitions were upward. This is a count of how often it happened historically, not "61% probability the market will move up from here".
Boundary states: no state exists above Bull Extreme or below Bear Extreme — so a one-directional transition percentage at a boundary should not be read automatically as a predictive reversal probability.
Time in Zone measures how long historical occurrences remained within a state, and may include: number of completed occurrences · average · median · maximum · current duration. A long current duration relative to history does not mean the state must end immediately.
11. Historical Statistics Are Not Forecasts
Market structure, volatility, liquidity, and participation can all change. Two observations sharing the same Market State may still produce very different subsequent price behavior. Use Research to understand the historical characteristics of a state, rather than to convert Market Energy mechanically into a trade.
12. Important Limitations
13. Proprietary Components
2AiTrading discloses enough for users to understand: what is measured, what data categories are used, when observations are produced, how to interpret Market Energy and Market State, how to read Research statistics, and the limitations. Components that remain proprietary include (but are not limited to): the exact formulas; internal transformations; adaptive-parameter logic; calibration details; model weights; source code; and proprietary feature construction. Non-disclosure of these does not change the interpretation rules above.
14. Versioning & Changes
2AiTrading maintains a versioned methodology. A review is triggered by material changes affecting: the calculation of Market Energy; the normalization framework; state thresholds; the meaning of a state; calculation timing; the treatment of historical observations; Research sampling; Research outcome definitions; or the interpretation of published statistics. Presentation-only changes do not necessarily constitute a new version.
15. How to Use Market Energy
A useful approach is to ask three questions — kept separate from "What will price do next?": (1) Where is the market now? → current Market Energy and Market State; (2) What has changed? → changes in Energy, transitions, multi-timeframe context; (3) How has this type of state behaved historically? → the relevant Research statistics.
16. Disclaimer
2AiTrading provides market analytics, measurements, historical research, and educational information. Nothing in Market Energy, Market State, Analysis, Research, or related content should be interpreted as personalized investment advice, an offer or solicitation, or a recommendation to buy, sell, or hold any financial instrument. Trading and investing involve risk. Historical observations and statistical relationships may not persist in the future. Users are responsible for their own decisions.