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.
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// 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 return |
You should adjust the two parameters to adjust the setting that fits best with the chart you are looking at.
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Hello Swingforfortune
Can we have the same code for short positions ?
thanks you
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.
Hello Swingforfortune,
would you like to share your code of the “greedzone” indicator?
thanks you Swingforfortune for your comment
No problem.
Snyggt!
Bara en enkel copy/paste från boken i PRT format…
Tack!
Hi Swingforfortune, are the variables period = 30 periodavstd = 100 optimized for daily chart?
What would you recommend for M30 oder H1?
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.
Thank you very much, I’ve tuned it to adept the M5
bonjour, J’utilise cet indicateur qui m’est très utile.
Mais, je n’arrive pas à créer d’alerte lorsqu’il apparait.
Est possible de créer une alerte et si oui comment s’il vous plait.
hello, I use this indicator which is very useful to me.
But, I can not create an alert when it appears.
Is possible to create an alert and if so how please.
Merci d’ouvrir un sujet sur le forum pour cette demande spécifique.