In this guide
Contraction requires a referenceA simple percentage methodDirection remains unknownConsistency beats decorative precisionContraction requires a reference
Saying a range is “tight” is relative. A useful comparison states which windows or swings are being compared and whether width is measured in absolute units, percentage terms or a volatility statistic such as ATR.
A simple percentage method
For a high-low range, subtract low from high and divide by the low to express width as a percentage. If successive hypothetical ranges shrink from 10% to 6% to 3%, the contraction is visible in a consistent unit.
Direction remains unknown
A narrower range says that recent dispersion is smaller under the chosen measure. It does not mathematically specify which boundary will be crossed next.
Consistency beats decorative precision
Comparing different range definitions can manufacture apparent contraction. Use the same measurement rule for every segment so the result reflects the values rather than a moving methodology.