Fearzone indicator
June 18, 2018, 8:19 AM
Indicators
13 Comments
This indicator is created by some Swedish authors/traders and is available in their book “Framgangrik aktiehandel”.
The indicator draws a candle underneath the price when two conditions are met indication that the market is in “fear mode”.
This could be a great opportunity since the market participants are not “rational” and that opportunities on the long side is possibly around the corner.
// FEARZONE
period = 30
periodavstd = 100
//First condition
FZ1 = (highest[period](totalprice) - totalprice)/highest[period](totalprice)
av1=average[periodAvStd](FZ1)
stdv1= STD[periodAvStd](FZ1)
FZ1Limit= av1+stdv1
// Second condition
FZ2 = average[period](totalprice)
av2=average[periodAvStd](FZ2)
stdv= STD[periodAvStd](FZ2)
FZ2Limit= av2-stdv
//In Fearzone?
if FZ1 > FZ1Limit and FZ2 < FZ2Limit Then
drawcandle(low-range,low-range,low-2*range,low-2*range) coloured(255,255,255)
endif
returnYou should adjust the two parameters to adjust the setting that fits best with the chart you are looking at.
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Filename:
FearZone-indicator.itf
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