ECRO Extreme Compression and Release Oscillator
- Indicators
-
Luca Enrico Mattei
Professional trader and quantitative developer specializing in algorithmic trading systems for MetaTrader 4 and 5. - Version: 1.0
- Activations: 5
ECRO – Extreme Compression & Release Oscillator
ECRO (Extreme Compression & Release Oscillator) is a technical analysis indicator designed to identify market compression, expansion, and transition states using a normalized close-based oscillator (0–100).
The indicator measures where the current closing price is positioned within a rolling price range and returns a value between 0 and 100, making market conditions easy to interpret at a glance.
ECRO is a descriptive tool, not a signal generator. It is intended to support structured market analysis and research workflows.
Key Advantages
-
Clear identification of COMPRESSION / RELEASE / NEUTRAL market states
-
Normalized oscillator (0–100) for consistent interpretation across instruments
-
Close-based calculation for stable behavior
-
Non-repainting logic
-
Delta ECRO for monitoring momentum changes
-
Works on all symbols, timeframes, and chart types (including Renko)
-
Lightweight, fast, and fully self-contained
-
No DLLs, no external connections, no account restrictions
How It Can Be Used
ECRO can help traders and analysts to:
-
evaluate market regime conditions
-
observe transitions between compression and expansion phases
-
add contextual information to price action analysis
-
complement existing discretionary or systematic frameworks
Important: ECRO does not provide buy or sell signals and does not include trading instructions.
Indicator States
-
COMPRESSION – price near the lower boundary of the recent range
-
RELEASE – price near the upper boundary of the recent range
-
NEUTRAL – price fluctuating inside the internal range
These states describe market behavior and do not imply future price movement.
Inputs / Parameters
-
ECRO Window
Lookback period used to calculate the normalized range (default: 20) -
Low Level
Threshold defining the compression zone (default: 20) -
High Level
Threshold defining the release zone (default: 80) -
Show Text Overlay
Enables or disables the on-chart informational text -
Text Corner
Selects the screen corner for the overlay (top-left, top-right, bottom-left, bottom-right) -
Text X Offset
Horizontal offset of the overlay -
Text Y Offset
Vertical offset of the overlay -
Text Color
Color of the informational text -
Text Font Size
Font size of the informational text
Additional Notes
-
Consistent behavior vs offline research implementations
-
No optimization or curve fitting required
-
Suitable for discretionary analysis and quantitative research support
ECRO – Extreme Compression & Release Oscillator
Developed by Luca E. Mattei
L.M. Trading & Development
