#hint: Expansion Contraction Indicator (ECI): \n ECI Identifies areas of price compression which

leads to price expansion. ECI doesn't show the direction of a trend but does indicate when a
trend is going to resume (price flagging) or if a change in trend polarity is happening.\n ECI plots
the areas where price becomes compressed with colored and clouded bands. The indicator also
leaves legacy points in areas of past compression.
#A Stochastic time series typically fluctuates from periods of expansion to periods of
contraction. ECI Identifies areas of price contraction or flags. ECI plots the areas where price
becomes compressed with colored points and clouded bands. The indicator also leaves legacy
points in areas of past compression or flags. This indicator alters price using a Gaussian filter to
differentiate stochastic drift from bounded random movement. Original plot style by Mobius.
This study presents another way to look at a modified Fractal Energy Algorithm. Plots on the
price chart are areas where price is compressing, also known as exhaustion areas, flags or
balance areas.
# ECI is based on the FE algorithm
# Original plot style by Mobius
# Note: Default Lengths are not optimized. My personal experience has been length ranges
between 8 and 13 are generally effective.
#ECI + SuperTrend + Fractal Pivots
#ECI + SuperTrend + RSI in Laguerre Time
#ECI + SuperTrend + Standard Deviation Bands
#ECI + Linear Regression Standard Deviation Bands
#Most folks use MTF studies to determine trend, momentum, breadth, sentiment across
different time frames to determine if they have an edge to undertake trading decisions. The ECI
is a bit different. The concept of the ECI is very simple - identifies areas of price compression
which in turn leads to price expansion. It doesn't show the direction of a trend but indicates
when a trend is going to resume or if there is a change in polarity of the trend.

# User Inputs
input EciLength = 8; #hint EciLength: Length for calculations.
input AvgLength = 8; #hint AvgLength: Length for smoothing.
input AvgType = AverageType.Simple; #hint AvgType: Average Type
input MeanValue = HL2; #hint MeanValue: Point of origen.
input DisplayPoints = yes; #hint DisplayPoints: No Points.
input OnExpansion = yes; #hint OnExpansion: Line extensions.

# Variables
script g {
input data = close;
def w = (2 * Double.Pi / 8);
def beta = (1 - Cos(w)) / (Power(1.414, 2.0 / 4) - 1 );
def alpha = (-beta + Sqrt(beta * beta + 2 * beta));
def G = Power(alpha, 4) * data +
4 * (1 – alpha) * G[1] – 6 * Power( 1 - alpha, 2 ) * G[2] +
 4 * Power( 1 - alpha, 3 ) * G[3] - Power( 1 - alpha, 4 ) * G[4];
plot Line = G;
}
def o = g(data = open);
def h = g(data = high);
def l = g(data = low);
def c = g(data = close);
def bar = BarNumber();
def HMax = Highest(Max(h, c[1]), EciLength);
def LMax = Lowest(Min(l, c[1]), EciLength);
def TR = HMax - LMax;
def ECI = Round((Log(Sum(TrueRange(h, c, l), EciLength) / TR) /
Log(EciLength)) / TickSize(), 0) * TickSize();
def Avg = MovingAverage(AverageType = AvgType, ECI, AvgLength);
def S1 = if ECI crosses above Avg
then MeanValue
else S1[1];
def S = ECI > Avg;
def SBars = if ECI > Avg
then bar
else Double.NaN;
def StartBar = if ECI crosses above Avg
then bar
else StartBar[1];
def LastSBar = if ECI crosses below Avg
then bar
else LastSBar[1];
def PP = if ECI crosses above Avg
then MeanValue
else PP[1];
def Mean_Limit = if bar != StartBar
then bar - StartBar
else if bar == StartBar
then Double.NaN
else Mean_Limit[1];
def SHigh = if ECI crosses above Avg
then h
else SHigh[1];
def SHighBar = if S and
h == SHigh
then bar
else SHighBar[1];
def SHigh_Limit = if bar == StartBar
then Double.NaN
 else if bar > StartBar
then bar - SHighBar
else SHigh_Limit[1];
def SLow = if ECI crosses above Avg
then l
else SLow[1];
def SLowBar = if S and
l == SLow
then bar
else SLowBar[1];
def SLow_Limit = if bar == StartBar
then Double.NaN
else if bar > StartBar
then bar - SLowBar
else SLow_Limit[1];
# Internal Script Reference
script LinePlot {
input LineLimit = 0;
input OnExpansion = yes;
input data = close;
input bar = 0;
def ThisBar = HighestAll(bar);
def cLine = if bar == ThisBar
then data
else Double.NaN;
def cond1 = CompoundValue(1, if IsNaN(data)
then cond1[1]
else data, data);
plot P = if ThisBar - LineLimit <= bar
then HighestAll(cLine)
else Double.NaN;
plot ExpLine = if OnExpansion and
IsNaN(data[-1])
then cond1
else Double.NaN;
}
# Plots
plot SD_Pivot = LinePlot(data = PP, LineLimit = Mean_Limit, OnExpansion = OnExpansion, bar =
StartBar).P;
plot SD_Pivot_X = LinePlot(data = PP, LineLimit = StartBar).ExpLine;
SD_Pivot.SetDefaultColor(Color.CYAN);
SD_Pivot_X.SetDefaultColor(Color.CYAN);
plot SD_R1 = LinePlot(data = SHigh, LineLimit = SHigh_Limit, OnExpansion = OnExpansion, bar =
SHighBar).P;
plot SD_R1_X = LinePlot(data = SHigh, LineLimit = SHigh_Limit).ExpLine;
SD_R1.SetDefaultColor(Color.Light_GREEN);
SD_R1_X.SetDefaultColor(Color.Light_GREEN);
plot SD_S1 = LinePlot(data = SLow, LineLimit = SLow_Limit, OnExpansion = OnExpansion, bar =
SLowBar).P;
plot SD_S1_X = LinePlot(data = SLow, LineLimit = SLow_Limit).ExpLine;
SD_S1.SetDefaultColor(Color.Light_RED);
SD_S1_X.SetDefaultColor(Color.Light_RED);
plot SPlot = if S
then S1 #l - (2 * TickSize())
else Double.NaN;
SPlot.SetHiding(!DisplayPoints);
SPlot.SetPaintingStrategy(PaintingStrategy.POINTS);
SPlot.SetLineWeight(1);
SPlot.SetDefaultColor(Color.Yellow);
#addCloud(SD_pivot, SD_R1, CreateColor(50,150,75), CreateColor(50,150,70));
#addCloud(SD_S1, SD_pivot, CreateColor(175,0,50), CreateColor(175,0,50));
#addCloud(SD_pivot_X, SD_R1_X, CreateColor(50,150,75), CreateColor(50,150,70));
#addCloud(SD_S1_X, SD_pivot_X, CreateColor(175,0,50), CreateColor(175,0,50));
# Audible Alerts
Alert(ECI crosses below Avg, "Exit", Alert.BAR, Sound.Bell);
AddLabel(1, "Energy Level = " + ECI, color.Dark_Orange);
# End Code Modified ECI