Fearzone indicator

Fearzone indicator

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.

You should adjust the two parameters to adjust the setting that fits best with the chart you are looking at.

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  1. supertiti • 06/18/2018 #

    Hello Swingforfortune

    Can we have the same code for short positions ?
    thanks you

  2. Swingforfortune • 06/18/2018 #

    Hello Supertiti,

    Yes I have experimented with a “greedzone” indicator as well. Howerver backtesting showed me that this is much harder to predict since the market participants is not in the same mental state of “urgent liquidation mode”. The balance between buyers and seller is more even when the price is moving uppwards.

    • m-zeter • 278 days ago #

      Hello Swingforfortune,

      would you like to share your code of the “greedzone” indicator?

  3. supertiti • 06/18/2018 #

    thanks you Swingforfortune for your comment

  4. Wilko • 06/18/2018 #


  5. Mattzi • 341 days ago #


  6. HeikinAshi • 315 days ago #

    Hi Swingforfortune, are the variables period = 30 periodavstd = 100 optimized for daily chart?
    What would you recommend for M30 oder H1?

  7. Swingforfortune • 315 days ago #

    Hello. It is different for different charts, you can first change the period to find fearzone “turning points” on the chart you are looking at. I do not change the other variable very often.
    So the answer is that you will need to tune it to different charts and time periods.

    • HeikinAshi • 292 days ago #

      Thank you very much, I’ve tuned it to adept the M5

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