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.
period = 30
periodavstd = 100
FZ1 = (highest[period](totalprice) - totalprice)/highest[period](totalprice)
// Second condition
FZ2 = average[period](totalprice)
if FZ1 > FZ1Limit and FZ2 < FZ2Limit Then
You should adjust the two parameters to adjust the setting that fits best with the chart you are looking at.
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