Adaptive Price Zone Strategy

The adaptive price zone ( APZ ) is a volatility-based technical indicator that helps investors
identify possible market turning points, which can be especially useful in a sideways-moving
market. It was created by technical analyst Lee Leibfarth in the article “Identify the
Turning Point: Trading With An Adaptive Price Zone,” which appeared in the September 2006 issue
of the journal Technical Analysis of Stocks and Commodities .
This indicator attempts to signal significant price movements by using a set of bands based on
short-term, double-smoothed exponential moving averages that lag only slightly behind price changes.
It can help short-term investors and day traders profit in volatile markets by signaling price
reversal points, which can indicate potentially lucrative times to buy or sell. The APZ can be
implemented as part of an automated trading system and can be applied to the charts of all tradeable assets.

Green color is long.
Red color is short.

- For purpose educate only
- This script to change bars colors.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Hi Potter

I tried using the APZ strategy as a test.

You have stated - "Green color is long. Red color is short.", which makes sense as per the chart pic shown above.

But when I used it the color of the candles appears the opposite from the stated above. Not sure, if I got it mixed up.
+1 Svara
HPotter natsrajan2
@natsrajan2, How I can see all working fine. You should to see inside body color of candle.
natsrajan2 HPotter
@HPotter, thanks......
Hi HPotter!
How is the strategy different from the indicator?
+1 Svara
krook quantumseed
@quantumseed, The green shows when you would go long and red when to go short when you would use the indicator.
@krook, Hmm...yep. But what's the criteria using the indicator that allows to go long or short. If that makes sense.Just curious.
HPotter quantumseed
@quantumseed, You can see that in the source code. If Low < Down band then long. If High > Up Band then short.
@HPotter, Ah...sorted. Thanks

check below pic, its completely strange results.

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