The market regime tells you what the overall tape is doing — measured by how many stocks are above their key moving averages and how broadly the market is participating.

In a Risk-ON regime (most stocks healthy, broad participation), valid setups follow through more reliably. You can be aggressive with quality leaders and trust the signals.

In a Caution or Risk-OFF regime, even A-grade setups fail more often. Discipline is to wait, take half-size positions, or stay flat. The same scanner output means something different depending on the regime.

Risk-ON (70+ score) — green light, full size on A-grade setups.
Risk-Neutral (50–69) — selective, focus on the best names only.
Caution (30–49) — half-size or wait.
Risk-OFF (below 30) — stay flat, even on top setups.