Fearzone is measuring when the price of the chart is to volatile on the downside showing panic in the market.
In this conditions good buying opportunities can emerge since the market participants are irrational and price falls “to much”.
A red bar is drawn under the price indicating that price have entered the “fearzone”.
The indicator can be used on its own or in combination for example over sold stochastic.
Look back period can be adjusted to see what works best to find the “bottoms” on the chart you are trading.
