Entropy-Gated Expansion State

This indicator identifies sustained directional expansion regimes by separating regime qualification from regime persistence. Directional entropy is used to detect when price transitions from a disordered environment into a structured one, acting as a gate that enables participation only during favorable market conditions. Once qualified, trend structure maintains the active state through consolidations and minor pullbacks, ensuring the indicator remains engaged throughout the expansion phase rather than firing as a short-lived signal.

The result is a persistent, state-based output that avoids sideways markets, reduces noise, and remains active during sustained trends across a wide range of assets, including high-volatility instruments.