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What The LPPLCP Is (And Isn't)?
Forget candles. Forget patterns. Forget guessing. The LPPLCP isn’t here to interpret triangles or trendlines. It doesn’t rely on old-school technical analysis tools like candlestick patterns, chart formations, or traditional indicators. Instead, it reads the underlying behavior of the market itself.
It tells you when the market is confident. When it’s confused. And most importantly, when it’s about to make up its mind.
You don’t need to predict the future—you just need to know when the system is changing. That’s what LPPLCP does.
We call this change a state change.
It’s also scale-invariant—a fancy way of saying it works on any timeframe. Whether you’re looking at 1 minute, hourly charts or daily or even longer cycles, the model detects the same types of behavioral transitions. The patterns repeat across timeframes—this quality is called self-similarity or fractal.
What is a "State Change"?
You might have heard terms like regime change, state change, or change of state. Here’s how we use them:
- Regime change refers to big, lasting shifts—like switching from a bull to a bear market, or from low interest rates to high ones. It implies a permanent or structural overhaul.
- State change, by contrast, is more subtle. It describes when the market shifts its behavior temporarily. It’s not a full system reboot—it’s a pause, a breath, a moment of disorganization before new structure forms.
Why do we use “state change”?
- It captures moment-to-moment psychological shifts in the market.
- It doesn’t imply a permanent reset.
- It fits how we observe structure breaking down and reforming in real time.
In our view, the market lives in just two basic states:
- The “Moving With Purpose” State
Also known as the Coherent Directional Phase
Here, the market is synchronized. People may not agree consciously, but their actions align. Price moves in a clear direction. There is order, flow, and structure.
Spot this state early, and you can follow the current. But this state never lasts forever. Eventually, coordination breaks down—and the system enters…
- The “I Don’t Know What I’m Doing” State
What we call the White State
This is not randomness, but it can look that way.
The market becomes disorganized. Prices jitter, but there’s no conviction. The crowd doesn’t know what to do, and it shows.
This white state is the intermediate zone between two structured regimes. It’s like the silence in a conversation when nobody knows what to say next.
In the white state:
- There is no stable structure.
- There is unresolved tension building under the surface.
- The system becomes extremely sensitive to small changes.
- Price has no “intent”—just random-seeming fluctuations.
We don’t trade the white state. We observe it. And we wait.
What LPPLCP Detects
The LPPLCP model watches for the entry into and exit from the white state.
It doesn’t predict price. It detects pressure building inside the system. Pressure that often leads to a change of state.
The colored segments of the LPPLCP line are called pulses. These are not just signs of price moving—they are signs of structure returning.
A pulse means the market is making up its mind. It’s shifting from drift to direction. From noise to intention.
You’re not seeing volatility. You’re seeing the system regaining coordination.
How You Use It
- If the system is in motion, pay attention.
- If the system is in white, wait.
- If you see a pulse, prepare. A shift is underway.
The LPPLCP isn’t trying to chase trends. It’s helping you understand what state the market is in—and when that state is about to change.
The model adapts. You read the signs.
Disclaimer!: For educational purposes only. Not investment or trading advice. No representation of accuracy or completeness; no guarantees. Trading involves risk, and past performance is not indicative of future results. You are solely responsible for your own decisions.
Charts, tools, and indicators utilized on this site are primarily provided by TradingView®. TradingView® is a registered trademark of TradingView, Inc., and holds no affiliation with the website owner, developers, or providers described herein.