Indicator Overview

The Mayer Multiple Extensions indicator overlays the historical price on a logarithmic scale with dynamic valuation bands derived from the 200-day simple moving average (SMA), extended by key multiples: 2.4× for overvalued conditions, 1.6× for the mid-line, and 0.8× for undervalued zones. These levels create visual envelopes around the SMA, with semi-transparent fills highlighting periods of overextension (red) or underextension (green), providing a clear representation of market deviations from long-term fair value. The 200-day SMA serves as the core trend anchor, while the multiples help map cycle highs and lows, enabling traders to contextualise current pricing within historical regimes.

Dual-Ticker Comparison Logic

The ‘Crypto’ fields allow the indicator to operate in both absolute price and relative performance modes, making it suitable for outright positioning or pair-based allocation decisions.

• Single Crypto Analysis: If Crypto 2 is left blank, the indicator measures Crypto 1 against US Dollars. This mode is designed to identify statistically stretched rallies, deep mean-reversion zones, and long-term accumulation conditions where price trades multiple standard deviations below its historical average.

• Relative Strength and Ratios: When both fields are populated, the indicator automatically constructs a ratio of Crypto 1 divided by Crypto 2, such as ETH/BTC or SUI/SOL. The metric is then calculated on the ratio itself, isolating relative performance and stripping out broad market beta. This enables precise identification of overperformance, underperformance, and regime shifts between assets.

How To Use

Overvalued signals emerge when the price pierces the 2.4× band, indicating potential cycle peaks and heightened downside risk, whereas breaches below the 0.8× band suggest deep undervaluation and strong accumulation opportunities. The mid-line (1.6×) acts as a pivotal equilibrium, with crossings signalling shifts in market regime. Upward breaks may confirm bullish momentum, while downward ones warn of bearish pressure. Traders can utilise these bands to time entries during undervalued phases, scale out near overvalued extremes, and assess overall cycle maturity, enhancing risk management in volatile environments.