From market signals to a framework

Beyond the Momentum Rotation Model: Introducing the Market Framework Model

In my Medium articles about the Momentum Rotation Model (MRM), I explored a repeating observation: markets often behave as if momentum rotates through recognizable phases. In *From Noise to Narrative: Why Market Phases Matter More Than Signals, I described why markets do not move through isolated triggers, but through recurring momentum states. In [The Hidden Signal in MRM’s Green Zone](https://medium.com/@maarten_18387/the-hidden-signal-in-mrms-green-zone-a-first-exploration-21d4f54a7826), I explored a nuance inside Phase 3: why downside pressure can still dominate inside recovery context, and why momentum shifts often emerge late in the phase. In [Why the Momentum Rotation Model (MRM) holds up across assets](http://Why the Momentum Rotation Model (MRM) holds up across assets), I shared how cross-asset observations suggested something unexpected: the rotational rhythm mapped by MRM appeared across markets with very different behavior profiles. That consistency raised an obvious question: If rotation is real, what happens when we place more structure around it?*

From MRM to MPF to MFM The first extension was the Market Pattern Framework (MPF): a short-term structural layer inspired by probability-oriented thinking used in emergency care. In my Medium article *From Data Jungles to Market Clarity*, I described how certain structural patterns can shift local probability without attempting to predict direction. From there, the next steps followed naturally. If markets rotate, they also:

• operate inside a broader environment
• express leadership or weakness relative to other assets
• reveal short-term structure in repeatable ways

So I added:

• a trend regime that defines the environment
• a cross-asset ratio that reveals leadership
• and the rotation phases as the internal engine

Once these layers were combined, a larger structure became visible. That structure is now the Market Framework Model (MFM).

What the Market Framework Model is MFM expands the rotational logic of MRM into a wider structural system. The idea is simple: If momentum rotates through recurring states, then the environment around that rotation should also be measurable. MFM captures this by combining multiple structural layers that influence how market behavior tends to express itself. It is not a forecasting tool and it is not designed to generate trades. It is an observational framework. Its purpose is context.

What MFM does The Market Framework Model brings four components together. Each one describes a different aspect of market structure.

1) Regime The regime layer describes the higher timeframe environment. It answers a simple question: Does the market currently show structural support for strength, or structural weight toward weakness? In MFM, regime is defined through the relationship between short-term and long-term momentum baselines. It changes slowly and acts as the environment in which all other behavior unfolds.

2) Phase The phase layer comes directly from the Momentum Rotation Model. It maps where momentum sits in its cycle:

• Phase 1: overheating / exhaustion context
• Phase 2: rotation / compression context
• Phase 3: rebuilding / recovery context
• No phase: no active rotation classification

This layer describes whether momentum appears stretched, reorganizing, or regaining strength.

3) Leadership Leadership compares an asset to a benchmark through a cross-asset ratio. It shows whether the asset is behaving as:

• a leader (outperforming the broader benchmark)
• a lagger (underperforming relative to the benchmark)

Leadership is not a signal layer. It is a context layer. It helps clarify whether strength or weakness is isolated, or supported by broader market flows.

4) Forecast The forecast layer comes from MPF. It highlights short-term structural setups that have historically repeated often enough to be worth tracking as local context markers.

• forecastUp marks a setup that has tended to lean upward under similar historical structure
• forecastDown marks a setup that has tended to lean downward under similar historical structure

These are not predictions and not trading signals. They are short-term structural clues that matter only when aligned with regime and phase. For example: a forecastUp inside a weak regime can remain noise, while the same setup inside a strong regime and supportive phase becomes structurally more coherent.

What this creates MFM does not generate trades or offer a complete trading system. It describes structural context only. Each layer provides clarity from a different angle. Combined, they create structure rather than noise. This is why MFM can be useful for more than traders. Analysts, researchers, quants, and anyone studying regime dynamics can use it to observe structure without forcing a forecast.

A clean example of MFM on the weekly chart of Gold. Regime, Phase and Leadership form the structural context.

Observations across markets To examine whether MFM held up structurally across different environments, I observed it across multiple assets with very different volatility profiles, including BTC, XRP, NVDA, SPX, and Gold. Despite the differences, several recurring tendencies appeared:

• Phase 3 often showed stronger continuation behavior in supportive structure
• Phase 2 frequently behaved like a compression field with limited directional resolution
• Phase 1 often reflected distribution-like behavior and increased dispersion
• Leadership refined these behaviors by showing whether moves were isolated or supported
• Regime functioned as a slow environmental filter shaping how phases expressed themselves

The key point is not performance. It is structure. Across unrelated markets, similar architecture kept appearing. That repeatability is what made MFM worth developing further.

The implementation The Market Framework Model (MFM) is a structural market observation framework developed by Inratios. It is currently visualized through a TradingView chart overlay implementation, but the framework itself is platform-independent.

Details are available on the website for anyone who wants to explore it further: **mfm.inratios.com**

Closing thoughts MRM revealed the rotational rhythm that sits underneath volatility. MFM builds on that foundation by adding the structural environment around that rhythm. The model is still evolving. But even in its current form, the framework consistently pushes the same idea: *structure comes first*.

If you want to explore the model or see the visual implementation, visit: **mfm.inratios.com **And if you want to understand how this journey started, the earlier Medium articles on MRM form the first chapter.

Disclaimer The Market Framework Model (MFM) and all related materials are provided for educational and informational purposes only. Nothing in this publication, the indicator, or any associated charts should be interpreted as financial advice, investment recommendations, or trading signals. All examples, visualizations, and backtests are illustrative and based on historical data. They do not guarantee or imply any future performance. Financial markets involve risk, including the potential loss of capital, and users remain fully responsible for their own decisions. The author and Inratios© make no representations or warranties regarding the accuracy, completeness, or reliability of the information provided. MFM describes structural market context only