The Range Zone indicator helps to visually separate price fluctuations into different ranges, which are characterized by accumulation, distribution or absence of influence of major driving market force.
- The static range boundaries (default - solid lines). If demand and supply are in balance, price tends to fluctuate within this range. The boundaries of the static range will not change until the price close the bar outside the both ranges.
- The dynamic range boundaries (default - dashed lines). The boundaries of the dynamic range complement static ones. The total range is widened in cases price fluctuations are beyond the boundaries of static and dynamic range, but there was no breakthrough movement.
- ZigZag. Partly coincides with the classic ZigZag indication.
In this indicator the ZigZag shows how the price moved exiting the range limits in the same direction.
Fig.1 shows the boundaries of static range, dynamic range and their total 'range zone'.
- dead zone (min. step price) - an additional distance - the bar should close at this distance or more in order to consider the current range completed. The distance from the range zone boundaries outward. Measured in Min. step price, i.e. minimal price change step. 1 unit = 1 minimal price change step.
- Show border static range
- Show border dynamic range
- Show lines ZigZag
The other parameters set the color of the lines. You can set 2 lines to each color. The color will be applied based on the side to which the previous range was broken.