Trend Stretch Meter(Expansion/Compression(MTF))[NETSGAIN]

[Description]

"Trend Stretch Meter(Expansion/Compression(MTF))[NETSGAIN]" is a visual tool to read the market’s flow around a moving average — like a “magnetic middle.”

Most markets don’t move in one direction forever. Price tends to stretch away from the average, then compress back toward it.
This indicator helps you see that behavior clearly using:

-Duration (how long price stayed on one side of the MA)

-Max distance reached during that run

-Current distance now

-A simple State label: Expansion / Flat / Compression

It’s not a buy/sell signal. It’s context.

[Core idea (the “MA magnet” principle)]

Look back at any chart: price often moves up and down around a central average.

Think of the MA as the “middle line” price naturally revisits:

After a long bullish stretch, momentum usually fades → pullback risk rises

After a long bearish stretch, selling pressure often weakens → bounce risk rises

This tool helps you measure how stretched the market is, and whether it’s still expanding or already compressing back toward the MA.

[What the panel shows (MTF)]

Each timeframe row is calculated inside that timeframe:

✅ Duration
Number of consecutive candles price stayed above or below the MA

1H duration = counted in 1H candles

4H duration = counted in 4H candles

Same for 5m / 15m / 1D

✅ Distance

Max = the farthest distance (%) from the MA during the current run

Now = current distance (%) from the MA

✅ State
A simple ratio check:

Let:
ratio = |NowDist| / |MaxDist|

Expansion if ratio >= Expansion threshold

Compression if ratio <= Compression threshold

Otherwise Flat

So if price was once far from the MA, but is now much closer → Compression = momentum fading.

[How to use it (practical interpretation)]

Use it as a “market condition” dashboard:

When you often get “late trend / flip conditions”

Long Duration + High MaxDist + Compression

The move stretched far and lasted long, but now it’s compressing

Often a sign momentum is weakening → mean reversion risk rises

When trend is still healthy

Duration + MaxDist rising + Expansion

Price remains near its max extension → momentum still strong

Multi-timeframe confirmation (simple)

If several TFs show Compression, the move is likely losing force

If several TFs show Expansion, trend strength is still alive

Again: not a signal, but great context for trade management.

[EXAMPLE]

In the first chart, observe the market after a prolonged extended move away from the MA.

The higher timeframe shows long duration

1H: Compression

4H: Flat state with extended duration (~50 bars)

Meanwhile, lower timeframes (5m / 15m) begin to shift into bearish expansion

This combination indicates that although the move lasted long, momentum is no longer strengthening. Lower timeframes turn first, signaling internal weakness.

In the next chart, price loses momentum and changes direction, returning toward the MA.

This pattern appears frequently across markets:

Long duration

Large distance from the MA

Followed by compression or lower-TF expansion against the prior move

The key idea is simple:
Price tends to revert back toward the middle.
When a move stays extended for too long and distance stops expanding, momentum fades and a reversal or deeper pullback becomes increasingly likely.

[Recommended setup (defaults)]
<Recommended MA>

✅ MA Length: 50

Type: MA (default)

Why MA50?
It’s responsive enough for crypto and intraday flows, but still acts like a “middle” reference.

Note:
This is a recommendation, not a rule.
You can freely adjust the MA length to match your market, timeframe, or trading style.

<Recommended thresholds>

✅ Expansion threshold: 0.70

✅ Compression threshold: 0.30

How to think about it:

Expansion 0.70 means: “price is still at least 70% of its max stretch”

Compression 0.30 means: “price has pulled back close to the MA relative to its max”

If you want earlier “momentum fading” detection:

Expansion: 0.65–0.70

Compression: 0.30–0.45

[Web vs Mobile setup]

TradingView cannot auto-detect device reliably, so this script provides a manual toggle:

<Desktop / Web>

Mobile Compact Mode: OFF

Bigger panel text + multi-line distance display

<Mobile>

Mobile Compact Mode: ON

Shortened distance strings to prevent panel overflow

Tip: Click panel position and set it to bottom


[Summary]

Trend Stretch Meter(Expansion/Compression(MTF))[NETSGAIN] is built to answer:

“How long has price been stretched on this side?”

“How far did it extend from the mean?”

“Is momentum still expanding… or already compressing back?”

Use it to read the flow and manage trades with better context — especially when moves start to get “too extended for too long.”

[Disclaimer]

This indicator is provided for informational and educational purposes only.
It does not constitute financial, investment, or trading advice.

All trading decisions made using this indicator are the sole responsibility of the user.
Past performance is not indicative of future results. Trading involves risk.