Price Zone Strategy
The Price Zone Strategy (PZS) was authored by Walid Khalil and David Steckler in the Stocks and Commodities Magazine, June 2011. The PZS uses price, previous price and moving averages to compute its oscillating value. It is a leading indicator that calculates buy and sell signals based on oversold / overbought conditions. The PZO system also uses a 60 period Exponential Moving Average and a 14 period Average Directional Movement Index (ADX). The user may change the input (close) methods and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using The Price Zone Strategy
Review the article in the Stocks and Commodities magazine and use back testing to help determine the optimum input values.
How To Access in MotiveWave
Go to the top menu, choose Add Strategy, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, default is closing price
//method = moving average,default is EMA
//Period = rsi slow period default is 14
//maPeriod = default is 60
//index = current bar number
Code may be available on request.