Dual-Engine Regime and Flow Oscillator

Dual-Engine Regime & Flow Oscillator (DERFI)

OVERVIEW
The DERFI is a market structure study that decouples price velocity from institutional volume participation. By combining an adaptive momentum engine with a normalized liquidity gauge, it highlights:

High-conviction trends backed by strong volume

Low-participation or "exhaustion" phases where price diverges from volume

TECHNICAL LOGIC & ORIGINALITY
Published as Protected to safeguard our proprietary regime-detection methodology. DERFI leverages two data streams:

Momentum Engine (Adaptive Price Velocity)

Dual-lookback smoothing with a 50-median center

Visualizes relative move velocity vs historical volatility

Liquidity & Activity Gauge (Volume Flow Proxy)

Normalized volume flow filtered for noise

Linear regression smoothing (10-period) to isolate institutional activity

HOW TO USE: ANALYZING MARKET REGIMES

High-Conviction Trends (Convergence)

Bullish: Momentum > 50 and Liquidity Gauge > 50 → price supported by institutional flow

Bearish: Both engines < 50 → strong selling pressure confirming downtrend

Spotting Thin Moves (Divergence)

Liquidity Lag: Momentum high (>80) but Liquidity <50 or falling → weak participation, possible pullback

Absorption Phase: Rising Liquidity with neutral Momentum → accumulation or distribution without major price move

Volatility Extremes

Exhaustion Zones: 80 (Overbought) and 20 (Oversold) act as caution flags, not automatic fade signals

Squeeze Read: Extreme Momentum + strong Liquidity → trend likely continues; drop in Liquidity → trend may end

USER INPUTS

Fast/Slow Momentum Lengths: Adjusts sensitivity of momentum engine

VFI Length: Smooths liquidity gauge for your timeframe

VFI Cutoff: Sets threshold for significant volume flow

NOTES
For historical visualization and educational purposes only. No trade signals, alerts, or financial advice. All calculations are proprietary and protected to maintain GammaBulldog research integrity.