Zone Strength [wbburgin]

The Zone Strength indicator is a multifaceted indicator combining volatility-based, momentum-based, and support-based metrics to indicate where a trend reversal is likely.

I recommend using it with the RSI at normal settings to confirm entrances and exits.

The indicator first uses a candle’s wick in relation to its body, depending on whether it closes green or red, to determine ranges of volatility.

The maxima of these volatility statistics are registered across a specific period (the “amplitude”) to determine regions of current support.

The “wavelength” of this statistic is taken to smooth out the Zone Strength’s final statistic.

Finally, the ratio of the difference between the support and the resistance levels is taken in relation to the candle to determine how close the candle is to the “Buy Zone” (<-0.5) or the “Sell Zone” (>0.5).

wbburgin

Versionsinformation:

Option to not show tertiary resistance lines (and make the plot appear easier to see).

Versionsinformation:

Ease-of-use update! Added a bunch of customizable MA features and made the interface easier to change.