Mellow wrote: Thu Feb 19, 2026 12:15 am
Does anyone know what "Tyrant Trap" means? It's in red at the bottom. Can't seem to find it in the guide.
Based on the code for XU EFFECT v3.04, these terms represent specific "zones" of market overextension. They are calculated by measuring the price's distance from the VWAP (Volume Weighted Average Price) and comparing it against volatility thresholds (ATR).
The system classifies the market state into a hierarchy of "Truth" (sustainable moves) versus "Fiction" (unsustainable anomalies).
Here is the breakdown of when they show up and what they mean:
1. The Zones of Extension
The indicator divides price action into four zones based on how far price has stretched from the VWAP.
VIRGIN (Safe Discovery):
Condition: Extension is < 50% of the baseline.
Meaning: The market is in a normal, healthy discovery phase. It is "safe" and represents the "Truth" of the market value.
KING (Early FOMO):
Condition: Extension is between 50% and 100%.
Meaning: Momentum is building. Traders are chasing the move ("FOMO"), but it is still within statistical norms.
TYRANT (Structural Stress):
Condition: Extension is between 100% and 300%.
Meaning: The move is becoming stretched. The market structure is under "stress," meaning a pullback or pause is becoming likely.
LIE (Statistical Fiction):
Condition: Extension is > 300%.
Meaning: This is a "3 Sigma" (3σ) event. The price move is mathematically unsustainable ("Fiction"). The code labels this "Maximum Fiction" because statistical probability dictates a reversion to the mean is imminent.
2. Specific Terms You Asked About
Tyrant Trap
When it shows up:
This appears when the price is in the Tyrant Zone (100–300% extension from VWAP), BUT the "Overextension" (OVR) metric is already screaming "Lie" (greater than 300% relative to ATR).
What it means:
The market is "trapping" traders. While the distance from VWAP might technically only be a "Tyrant," the volatility-adjusted distance (OVR) shows the move is actually exhausted. It suggests the trend is weaker than it looks and is likely to reverse violently.
Visuals: Shown in Red or Crimson on the HUD.
Fictional Lie (Statistical Fiction)
When it shows up:
This triggers when the Extension (EXT) or Overextension (OVR) exceeds 300% (TYRANT_THRESHOLD).
What it means:
The current price is a "Lie." The move has gone too far, too fast. In this state, the indicator considers the price action to be "fake" or distinct from real value. It usually signals a "Snap-Back" opportunity, where price will rapidly return to the VWAP.
Visuals: Shown in Red with the label "LIE (3σ+)".
Running Lie vs. Exhausted Lie
The code further categorizes a "Lie" based on Delta Volume (ΔVol) to tell you if you should trade against it or wait:
Running Lie (Do Not Fade):
Condition: The price is a "Lie" (>300%), but Volume is High (DELTA_RUNNING).
Meaning: Even though the price is overextended, massive volume is pushing it. Do not short/fade this. The "Lie" is still running.
Exhausted Lie (Strike Zone):
Condition: The price is a "Lie" (>300%), but Volume is Low/Dying (DELTA_EXHAUSTED).
Meaning: The move is overextended and has no volume to support it. This is the perfect setup for a reversal trade.
Intuitive button panel:
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