MA 250 & 1250 + Overextension

This indicator is designed for long-term and macro traders who use moving averages to identify structural support levels and potential overextended tops.

It plots two key simple moving averages:

• 250-day SMA (≈1-year average)
  
• 1250-day SMA (≈5-year average)
  

While the 1250-day MA often acts as strong support during major market bottoms, the 250-day MA serves as a dynamic reference for identifying potential tops.

The core innovation of this script is the addition of user-defined overextension zones above the 250-day MA:

• +30% zone: highlights potential cyclical tops (ideal for less volatile assets)
  
• +50% zone: marks extreme overextension levels (useful for volatile instruments)
  

You can independently choose which background zone to display:

• "+30% only"
  
• "+50% only"
  
• "Both" (with +50% taking visual priority)
  
• "None"
  

Visual cues include:

• Colored circles when price enters each overextension zone
  
• Optional semi-transparent background highlighting active zones
  
• Clean, non-repainting logic based on closing prices
  

Use cases:

• Confirming structural support near the 1250-day MA during deep corrections
  
• Assessing risk/reward when price moves far above the 250-day MA
  
• Avoiding late long entries in euphoric market phases
  
• Identifying potential distribution zones in long-term uptrends
  

Note: This tool does not generate buy/sell signals on its own. It is intended as a contextual filter to complement price action, volume, momentum, and macro analysis.