# Expanded Cloud Expanded Cloud is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. The Expanded Cloud wraps price in a trailing, price-reactive cloud built from Donchian extremes, with dots marking each new trend phase and cloud width tracking how hard a move is expanding. A built-in dashboard reports PNL, expectancy, and average first-touch statistics for the cloud's signals, giving trend followers a visual system they can also quantify. - Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 25, 2025. - Access: free. - Concepts: [Dynamic S/R Via MA](https://www.luxalgo.com/library/concept/dynamic-s-r-via-ma/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn1gz90020vhsgc93mdcoq - Page: https://www.luxalgo.com/library/indicator/expanded-cloud/ **Expanded Cloud** turns Donchian Channel extremes into a trailing cloud that hugs price and reads as [dynamic support and resistance](https://www.luxalgo.com/library/concept/dynamic-s-r-via-ma/). The cloud runs beneath price while the trend is up and overhead once it turns down, widens as moves strengthen, and trails behind retracements: one shape carrying direction, momentum, and stop placement at once, with a statistics dashboard attached to keep its signals honest. ## How to Trade the Expanded Cloud? - **Cloud below price**: uptrend in force. Hold longs and treat the cloud as trailing support. - **Cloud above price**: downtrend. The cloud caps rallies as trailing resistance. - **Dots**: mark the start of each new trend phase, the tool's clearest visual entry cue. - **Cloud contraction**: when the cloud narrows while staying on the trend side of price, a retracement is often ending and continuation becomes the base case. The dashboard adds context to every signal: **PNL** simulates the running profit or loss of the cloud's trend-following signals, **EXPECT.** blends win rate with average risk-reward into an expected value per trade, and **AVG 1st TOUCH** counts the average candles before price first tags the cloud in a new trend, a useful gauge of how much room a fresh signal typically gets. ## Expanded Cloud Settings - **Length**: bars used for trend identification. Shorter reacts to quick swings, longer filters noise to surface macro trends. - **Expansion %**: how aggressively the cloud widens with price movement; high values (80-100%) hug price, low values (0-30%) stay slow and smooth through chop. - **Source**: the price series the calculations run on (close, hl2, and so on). - **Show Statistics / Position / Size**: toggle the statistics panel (off by default) and set its corner and scale. ## Frequently Asked Questions ### How is this different from plain Donchian Channels? Classic [Donchian Channels](https://www.luxalgo.com/library/indicator/donchian-channels/) plot static highest-high and lowest-low boundaries. The Expanded Cloud wraps that base in a price-reactive cloud with trend-start dots and expansion-controlled width, so direction and momentum are readable at a glance. ### Can the cloud manage my stop-loss? Yes. The cloud trails price by construction, so it doubles as a dynamic reference for stop placement. Because it follows the move rather than a fixed distance, the same approach carries across the markets and timeframes you trade. ### How do I start using the Expanded Cloud? It is free on the LuxAlgo Library, and you can send it straight into Quant, our coding agent, from this page to test how its signals behave on your markets. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [MA Sabres](https://www.luxalgo.com/library/indicator/ma-sabres/) (Dynamic S/R Via MA): markdown at https://www.luxalgo.com/library/indicator/ma-sabres.md - [FVG Positioning Average](https://www.luxalgo.com/library/indicator/fvg-positioning-average/) (Dynamic S/R Via MA): markdown at https://www.luxalgo.com/library/indicator/fvg-positioning-average.md - [Signal Forge](https://www.luxalgo.com/library/indicator/signal-forge/) (Moving Average Crossovers): markdown at https://www.luxalgo.com/library/indicator/signal-forge.md - [LuxAlgo - Screener (S&O)](https://www.luxalgo.com/library/indicator/luxalgo-screener-s-o/) (Moving Average Crossovers): markdown at https://www.luxalgo.com/library/indicator/luxalgo-screener-s-o.md - [Signal Moving Average](https://www.luxalgo.com/library/indicator/signal-moving-average/) (Moving Average Crossovers): markdown at https://www.luxalgo.com/library/indicator/signal-moving-average.md - [MA of MA](https://www.luxalgo.com/library/indicator/ma-of-ma/) (Trend): markdown at https://www.luxalgo.com/library/indicator/ma-of-ma.md - [Moving Averages Proximity Oscillator](https://www.luxalgo.com/library/indicator/moving-averages-proximity-oscillator/) (MA Ribbon): markdown at https://www.luxalgo.com/library/indicator/moving-averages-proximity-oscillator.md - [Golden Cross](https://www.luxalgo.com/library/indicator/golden-cross/) (Trend): markdown at https://www.luxalgo.com/library/indicator/golden-cross.md --- Source: https://www.luxalgo.com/library/indicator/expanded-cloud/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/