The Expansion & Contraction Indicator is designed to capture shifts in market energy and volatility cycles by comparing short- and long-term price expansions against statistical ranges. This study highlights when markets are transitioning from contraction phases (quiet, compressed moves) into expansion phases (volatile breakouts)—a critical edge for timing entries and exits.
Key Features:
✅ Dual Expansion-Contraction Models – Tracks short-term and long-term expansion/contraction patterns to identify both immediate setups and broader context.
✅ Moving Standard Deviation Bands – Adaptive thresholds (based on long lookback periods) help confirm when expansion exceeds normal volatility.
✅ Bullish & Bearish States – Automatically classifies conditions into Weak Bull, Strong Bull, Weak Bear, or Strong Bear, giving traders instant directional context.
✅ Cloud Visualization – Adds green/red clouds between positive and negative values to easily spot shifts in control.
✅ Bar Coloring Option – Price bars can be color-coded (light green/green for bullish, pink/red for bearish) for quick decision-making.
Perfect For:
Traders who want to anticipate breakouts before they happen by monitoring volatility compressions and expansions. Useful for swing traders, breakout traders, and anyone looking to catch big moves after quiet consolidations.
The Expansion & Contraction Indicator is designed to capture shifts in market energy and volatility cycles by comparing short- and long-term price expansions against statistical ranges. This study highlights when markets are transitioning from contraction phases (quiet, compressed moves) into expansion phases (volatile breakouts)—a critical edge for timing entries and exits.
Key Features:
✅ Dual Expansion-Contraction Models – Tracks short-term and long-term expansion/contraction patterns to identify both immediate setups and broader context.
✅ Moving Standard Deviation Bands – Adaptive thresholds (based on long lookback periods) help confirm when expansion exceeds normal volatility.
✅ Bullish & Bearish States – Automatically classifies conditions into Weak Bull, Strong Bull, Weak Bear, or Strong Bear, giving traders instant directional context.
✅ Cloud Visualization – Adds green/red clouds between positive and negative values to easily spot shifts in control.
✅ Bar Coloring Option – Price bars can be color-coded (light green/green for bullish, pink/red for bearish) for quick decision-making.
Perfect For:
Traders who want to anticipate breakouts before they happen by monitoring volatility compressions and expansions. Useful for swing traders, breakout traders, and anyone looking to catch big moves after quiet consolidations.
