Simple indicator to visualize Transient Zones (TZ) and Potential Transient Zones (PTZ).
Original ForexFactory thread by EURUSDD http://www.forexfactory.com/showthread.p...
- Mid bar transient zones detection
- Draw rectangles for zones (once drawing gets implemented in pine script)
- Mark forming PTZs more clearly
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.
study("Transient Zones", "TZ", overlay=true) h_left = input(title="h left", type=integer, defval=10) h_right = input(title="h right", type=integer, defval=10) show_ptz = input(title="Show PTZ", type=bool, defval=true) show_channel = input(title="Show channel", type=bool, defval=true) //barCount = nz(barCount) + 1 //check history and realtime PTZ h_left_low = lowest(h_left) h_left_high = highest(h_left) newlow = low <= h_left_low newhigh = high >= h_left_high plotshape(newlow and show_ptz, style=shape.triangledown, location=location.belowbar, color=red) plotshape(newhigh and show_ptz, style=shape.triangleup, location=location.abovebar, color=green) channel_high = plot(show_channel ? h_left_low : 0, color=silver) channel_low = plot (show_channel ? h_left_high : 0, color=silver) //check true TZ back in history central_bar_low = low[h_right + 1] central_bar_high = high[h_right + 1] full_zone_low = lowest(h_left + h_right + 1) full_zone_high = highest(h_left + h_right + 1) central_bar_is_highest = central_bar_high >= full_zone_high central_bar_is_lowest = central_bar_low <= full_zone_low plotarrow(central_bar_is_highest ? -1 : 0, offset=-h_right-1) plotarrow(central_bar_is_lowest ? 1 : 0, offset=-h_right-1)
OR ANY OTHER INDICTER SAME AS THIS IS
This indicator is NOT meant for that. It is used to study the properties of transient and recurrent zones, which you can read more about on an old thread on ForexFactory.
A final word of advice to anyone who wishes to delve deeper into these concepts. Be prepared to spend a lot of time, as it is a time sink. Is there a way to trade profitably with these concepts? Yes (if you really think outside the box). Are there alternate, faster ways to consistency and profitability? Absolutely. If you think you must study this, my advice is to put this topic at the end of your list of things to look into.
Hope this helps :)