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PFA_ATR Locha

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Condensed Abstract (Advanced)

ATR Locha functions as a non-directional volatility-regime discriminator, operationalizing ATR normalized by price to detect latent shifts in market stress dynamics. By stratifying volatility into compression, equilibrium, and expansion states, it isolates pre-trend instability and post-trend exhaustion without invoking directional bias. The indicator is structurally anticipatory rather than predictive, serving as a probabilistic risk-state lens that contextualizes price behavior, enhances temporal positioning, and mitigates regime-mismatch errors when integrated with structural or trend-confirmatory frameworks.

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