Lorentzian Classification Indicator
What you'll learn
This comprehensive guide will walk you through the intricacies of the Lorentzian Classification Indicator, a powerful tool for technical analysis in TradingView.
Introduction
Whether it's the frozen milliseconds of panic after a black swan event, when time seems to grind to a halt, or the face-melting euphoria of a bull market's final surge when time accelerates into a blur -- it is in these moments of extremes that we may catch a glimpse of a profound truth: markets don't exist in flat, Euclidean space.
Why This Matters
Just as massive objects bend the fabric of spacetime, significant economic events warp the geometry of markets. These distortions ripple through what we might call the fabric of "price-time," transforming the very space in which markets exist. Yet traditional technical analysis, built for a flat and uniform world, continues to assume that past and present can be compared directly. In doing so, it makes a devastating mistake: treating curved space as if it were flat—leaving traders vulnerable during those turbulent moments when market geometry warps most violently, when accurate analysis is crucial to navigating market extremes.
How Lorentzian Classification Works
Drawing from the mathematics of curved space in theoretical physics, Lorentzian Classification charts a new course through warped market geometry. Where traditional indicators assume flat space, we embrace the curve. Where they measure linear distance, we measure along geodesics. Where they break down, we adapt. At the heart of this approach lies the Lorentzian distance metric—a sophisticated mathematical tool born from relativity theory. Paired with a novel nearest neighbors algorithm that ensures chronologically diverse reference points, this framework adeptly navigates the complex curves and distortions of market space, surpassing the limitations of traditional analysis.
What This Means for Traders
From this curved space emerges a revolutionary approach to understanding markets—one that not only survives moments of extreme volatility but also harnesses it into a source of valuable analytical insights. Through classification scores, we quantify the unquantifiable. Through kernel regression, we visualize the invisible. Through adaptive filtering, we navigate the unnavigable. Yet this framework isn't meant to be a crystal ball gazing into future price action. Rather, it serves as a sophisticated lens through which traders can finally see markets as they truly are: curved spaces where fear and greed bend the very fabric of price and time.
What This Guide Covers
The following guide is a high-level overview of the major sections you'll find, starting with the Premium Version enhancements. Each section will build on the concepts of curvature-aware market analysis, providing both conceptual depth and practical techniques.
Now ranking among the Top 30 indicators of all time with 20k boosts, Lorentzian Classification has evolved into one of TradingView's most influential indicators.