Volume Zone Indicator (VZO) and Price Zone Indicator (PZO) are by Waleed Aly Khalil.
Volume Zone Indicator (VZO)
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VZO is a leading volume oscillator that evaluates volume in relation to the direction of the net price change on each bar.
A value of 40 or above shows bullish accumulation. Low values (< 40) are bearish. Near zero or between +/- 20, the market is either in consolidation or near a break out. When VZO is near +/- 60, an end to the bull/bear run should be expected soon. If that run has been opposite to the long term price trend direction, then a reversal often will occur.
Traditional way of looking at this also works:
* +/- 40 levels are overbought / oversold
* +/- 60 levels are extreme overbought / oversold
More info:
drive.google.co...HhyaWtTdjA/edit?usp=sharin...
Price Zone Indicator (PZO)
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PZO is interpreted the same way as VZO (same formula with "close" substituted for "volume").
Chart Markings
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In the chart above,
* The red circles indicate a run-end (or reversal) zones (VZO +/- 60).
* Blue rectangle shows the consolidation zone (VZO betwen +/- 20)
I have been trying out VZO only for a week now, but I think this has lot of potential. Give it a try, let me know what you think.
Volume Zone Indicator (VZO)
------------------------------------------------------------
VZO is a leading volume oscillator that evaluates volume in relation to the direction of the net price change on each bar.
A value of 40 or above shows bullish accumulation. Low values (< 40) are bearish. Near zero or between +/- 20, the market is either in consolidation or near a break out. When VZO is near +/- 60, an end to the bull/bear run should be expected soon. If that run has been opposite to the long term price trend direction, then a reversal often will occur.
Traditional way of looking at this also works:
* +/- 40 levels are overbought / oversold
* +/- 60 levels are extreme overbought / oversold
More info:
drive.google.co...HhyaWtTdjA/edit?usp=sharin...
Price Zone Indicator (PZO)
------------------------------------------------------------
PZO is interpreted the same way as VZO (same formula with "close" substituted for "volume").
Chart Markings
------------------------------------------------------------
In the chart above,
* The red circles indicate a run-end (or reversal) zones (VZO +/- 60).
* Blue rectangle shows the consolidation zone (VZO betwen +/- 20)
I have been trying out VZO only for a week now, but I think this has lot of potential. Give it a try, let me know what you think.
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
//
// @author LazyBear
//
// If you use this code in its original/modified form, do drop me a note.
//
study("Volume Zone Oscillator [LazyBear]", shorttitle="VZO_LB")
length=input(20, title="MA Length")
dvol=sign(close-close[1]) * volume
dvma=ema(dvol, length)
vma=ema(volume, length)
vzo=iff(vma != 0, 100 * dvma / vma,0)
hline(60, color=red)
hline(40, color=gray)
hline(20, color=gray)
hline(0, color=gray)
hline(-20, color=gray)
hline(-40, color=gray)
hline(-60, color=green)
plot(vzo, color=maroon, linewidth=2)