• Overview
  • Reviews (1)
  • Comments (3)
  • What's new

Price Zone Oscillator

The idea after PZO is about finding a smoother alternative to Relative Strength Index (RSI) that measures momentum and strength of the price movement.

PZO depends on one condition: If today’s closing price is higher than yesterday’s one, then the closing price will have a positive value (bullish); otherwise it will have a negative value (bearish).

PZO Version 3 uses a volatility filter to find signals in trending markets only.


How it works

  • PZO will give buy signals only if the trend filter is strong and price is trending to the upside.
  • PZO will give sell signals only if the trend filter is strong and price is trending to the downside.
  • If volatility is weak, any signal is ignored and no arrows appear on the chart.
  • When PZO crosses its overbought level (whether dynamic or fixed), then the trend might reverse direction to the downside.
  • When PZO crosses its oversold level (whether dynamic or fixed), then the trend might reverse direction to the upside.
  • Default number of candles used in calculation is 14 candle and we suggest not changing it except for a good reason.
  • Default calculation price is Close price but I added the ability to change it to other prices like High, Low, Open.
  • As a leading oscillator, divergence between the price line and PZO could help you find a reversal area in trend direction faster.


Features


  • Green PZO shadow for uptrend with high volatility.
  • Red PZO shadow for downtrend with high volatility.
  • No shadow means low volatility and no trade signals.
  • Trend filter label that reads in percent between 0 and 100%.
  • Users can switch between both Ordinary and Dynamic levels.
  • Buy, Sell arrows to help identifying PZO oversold, overbought signals.
  • Sound, email and mobile alerts depending on user choice.
  • Well-designed style that user can control.


Parameters


1) PZO Line Inputs

  • PZO Price: price used in calculation (Open, High, Low…). Default is Close.
  • PZO Bars: number of bars or candles used in calculation. Default is 14 bars.
  • PZO Color: Default is White.
  • PZO Width: Default is two.

2) Shadows & Trend Filter Inputs

  • PZO Style: Choose to show PZO main line with trend filter shadow around it. Default is to Show Shadow.
  • Trend Filter Info Corner: Choose the corner to show Trend Filter Label. Default is right lower corner.
  • Trend Filter Bars: Number of bars or candles used in Trend Filter calculation. Default is 100.

3) Levels Style Inputs

  • Choose Levels Style: Users can choose between dynamic or fixed levels for the overbought and oversold conditions. Default is Dynamic.
  • Over Bought Line Color: Default is Green.
  • Midline Color: Default is White (midline appear in fixed style only).
  • Over Sold Line Color: Default is Brown.
  • Over Bought in Fixed Style: Default is +45.
  • Midline in Fixed Style: Default is zero.
  • Over Sold Line in Fixed Style: Default is -45.

4) Arrows Custom Inputs

  • Show Signal: Choose to show or hide PZO Arrow Signals.
  • Buy Arrow Color: Default is Yellow Green.
  • Sell Arrow Color: Default is Chocolate.
5) Alerts Setting
  • Alert: Users can choose to see an alert message when a new trading signal appears on the chart (default is yes).
  • Send email: Users can choose to see an email to his inbox when a new trading signal appears on the chart (default is no).
  • Send Notification: Users can choose to send push notifications to the mobile terminals (default is no).


market.eight
979
market.eight 2018.05.29 01:26 
 

A very useful indicator especially when used in conjunction with my other indicators.

Version 3.0 2018.03.02
Made a revision to the code to make sure that their are no bugs.
Made inputs much more user friendly.
Added a Trend Filter for trading signals to follow the trend.
Added shadows to the main line to show the current trend.