Momentum Expansion vs Contraction

Momentum Expansion vs Contraction reads the grammar of momentum expansion vs contraction on the oscillator of your choice — MACD histogram by default, or Momentum, Rate of Change, RSI, Stochastic %K or CCI, re-centered into one zero-based histogram. Bar-to-bar, a growing or shrinking streak must sustain for 3 confirmation bars before a phase is called; swing-to-swing, successive 5-bar peaks and troughs are compared and connected.

How to Trade the Momentum Expansion vs Contraction?

• Full-color columns: each reading stretches further from zero than the last — the move is accelerating.
• Faded columns: readings shrinking back toward zero — deceleration; a warning, not a signal.
• Dashed connectors: the latest momentum peak or trough fell short of the prior one; repeated shortfalls against fresh price extremes are the raw material of divergence.
• Phase confirmations: expansion and contraction alerts fire only after the full confirmation window.

Neither read predicts on its own — the pane grades the move already under way.

Momentum Expansion vs Contraction Settings

• Oscillator (default MACD Histogram): the tool the grammar is read on; RSI and Stochastic %K plot as distance from 50.
• Source (default close).
• MACD Fast / Slow / Signal (defaults 12 / 26 / 9): the histogram engine.
• Oscillator Length (default 14): lookback for the non-MACD options.
• Confirmation Bars (default 3): consecutive growing or shrinking bars needed to call a phase; a zero-line side change resets the count.
• Swing Detection Length (default 5): pivot strength of the swing read.
• Bar Coloring (default Bar-to-bar): each column painted by its own read, or Confirmed Phase for one color per phase.
• Display toggles: Swing Connectors (on), Phase Markers (off), Show Dashboard (on).

Frequently Asked Questions

How is this unlike the Awesome Oscillator's coloring?

The Awesome Oscillator colors bars by raw bar-to-bar change on one fixed oscillator. This build makes the tool selectable, demands a sustained streak before a phase is called, and adds the swing-to-swing comparison single-bar coloring cannot see.

Is a contraction phase a reversal signal?

No — read it as early caution that the move is losing pace, — consolidations begin the same way. Tighten management or ask for more confirmation; peaks repeatedly falling short as price makes new highs is the sharper tell.

Which oscillator option should I pick?

The MACD histogram is the natural default — the bar-to-bar read is native to it. The grammar depends on shape, not the tool — if your charts already run RSI or CCI, pick the same engine so the panes agree.