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TMT %C Original II

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Percent C (Contraction ) has been part of the TMT toolkit since the 1990s. It was developed to measure how much of a market’s potential range is being used — not in points or direction, but in effort. It reflects volatility utilization, the fuel behind movement. Percent C measures how tightly price is using its available range. When Percent C is high, price action is compressed and efficient — energy is wound up like a spring. The market is trend-ready and capable of sustained movement. When Percent C is low, price has already traveled inefficiently across its range — the move is extended, momentum is spent, and the trend is vulnerable to stalling or reversal. Direction matters: When Percent C is ascending, price behavior is becoming choppier and less directional. When Percent C is descending, price behavior is becoming more directional and trend-dominant.

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