Market Participation Gradient [Interakktive]

Market Participation Gradient (MPG) is a diagnostic oscillator that measures the quality and intensity of market participation by combining price efficiency with activity (volume or a FX-safe proxy) into a single 0–100 score.

Most tools tell you "how much activity exists." MPG focuses on "how effective that activity is," helping you differentiate clean directional participation from absorbed / inefficient participation where effort produces limited directional progress.

█ WHAT IT DOES

- Produces a 0–100 participation score (higher = stronger participation environment)
- Uses color as state context (not buy/sell)
- Classifies participation into four tiers for quick readability
- Includes an optional status-line HUD for at-a-glance context without chart clutter

█ WHAT IT DOES NOT DO

- NO buy/sell signals
- NO entries/exits
- NO alerts by default
- NO repainting / no lookahead (diagnostic context only)

█ HOW TO READ MPG

Level (0–100)
- Higher values = stronger participation environment
- Lower values = thin, drifting participation environment

Color (state language, not direction)
- Teal = Clean participation (efficient movement)
- Magenta = Absorbed participation (high activity, low efficiency)
- Amber = Building / transition state
- Grey = Thin / neutral state



█ TIER SYSTEM

MPG uses four tiers:
- THIN (0–20): low participation environment
- BUILDING (20–40): participation emerging / transitional
- STRONG (40–65): solid participation environment (quality becomes more meaningful)
- EXTREME (65+): very high participation environment (contextually important during events or late-cycle pushes)



█ QUALITY ASSESSMENT (STRONG / EXTREME)

Within STRONG and EXTREME tiers, MPG evaluates participation quality:
- Clean (Teal): Efficiency > 55%
- Absorbed (Magenta): Efficiency < 30% AND Activity > 1.5×
- Neutral (Grey): otherwise (mixed quality)

█ STATUS LINE HUD

MPG can display key values in TradingView's status line:
- Minimal: MPG (0–100) + Tier (0–3)
- Full: adds Direction (-1/0/1) and Quality (-1/0/1)

This provides quick context without tables or on-chart panels.



█ HOW IT WORKS (METHODOLOGY)

MPG combines two independent measurements:

1. Efficiency (0–1)
Efficiency = |Net Displacement| / Total Path Length
- High efficiency = price moved more directly
- Low efficiency = price moved less directly (more back-and-forth)

2. Activity (centered at 1.0)
Activity = Current Volume / Average Volume
- Activity > 1 = above-average activity
- Activity < 1 = below-average activity

FX / indices fallback: If volume is unreliable/unavailable, MPG uses a range-based proxy: (High–Low) / ATR (capped) to prevent distortion.

3. Participation Score (0–100)
Participation = Efficiency × √Activity × 100
The square root applies diminishing returns so activity alone cannot dominate without efficiency support.

█ SETTINGS

Core
- ATR Length — normalization baseline
- Efficiency Lookback — bars used for efficiency
- Volume Average Length — baseline for activity
- Smoothing Length — EMA smoothing (1 = minimal smoothing)

Visuals
- Histogram / Line / Tier Bands toggles
- Optional pane background tint (default OFF)
- Theme: Cinematic (subtle) or Vivid (brighter)



HUD
- Status Line HUD toggle
- HUD Detail: Minimal or Full

█ SUITABLE MARKETS

Works on any market with price data. For symbols with unreliable volume (common in FX), MPG automatically uses the range/ATR activity proxy.

█ RELATED (INTERAKKTIVE)

- MER — Market Efficiency Ratio (pure efficiency)
- ERD — Effort–Result Divergence (effort vs outcome)
- VSI — Volatility State Index (expansion/contraction context)

█ DISCLAIMER

This indicator is for educational and informational purposes only and does not constitute financial advice. Always do your own research and use appropriate risk management.