TradingCanyon

Trading Zone v1.1 [by TC]

Trading Zone is a very functional indicator that can be used either as a single trading indicator, generating superior entry and exit signals; or it can be successfully employed as a combined support tool for other trading indicators.

The algorithm script is based on a combination of several momentum strategies and is capable of signaling the trend while detecting overbought and oversold levels.

This indicator works very well for all instrument types and time frames, and it can be utilized for all types of trading strategies. You can use the indicator either as a trading tool to identify optimal entry or exit positions or to analyze the trend direction.

How to use:
1. Use on any instrument and time frame (fine-tune Settings).
2. When the signal line turns positive (turns Green) or when the uptrend arrow is displayed (Green arrow, up) –> enter Long position.
3. When the signal line turns negative (turns Red) or when the downtrend arrow is displayed (Red arrow, down) –> exit Long position (or go Short).
4. Exit also when -> trade hits your profit target/limit or stop loss (determined by user).

The trading zones are used to display overbought (red zone) and oversold (green zone) conditions. The price can remain overbought or oversold for quite sometime, which normally indicates a strong trend. A good entry point is often when the signal line breaks out of the oversold / overbought zones and crosses the sell (+0.2),- or buy (-0.2) zone line.

Trade Alerts for Trading Zone:

"Buy - Signal Line Alert" = Signal line (changes color to: green)
"Sell - Signal Line Alert" = Signal line (changes color to: red)

"Buy - Up Trend Arrow" = Green Arrow (up)
"Sell - Down Trend Arrow" = Red Arrow (down)

IMPORTANT: Wait for candlestick close to ensure signal is a confirmed signal!

Exactly how the indicator is used varies from trader to trader. It can be a scalping tool in shorter timeframes by using the signal line as the main indicator, but it can also be used as a trend or timing indicator for regular trading and investment strategies. If you use it to trade very low or high timeframes, you may need to finetune the settings a bit.
This indicator has been developed to work with traditional bar candles, but we also recommend using it with Heikin Ashi candles to filter out as much noise as possible and as these often have an improved ability to capture high-quality trends.

⚠ If you are new to trading and/or technical analysis in general, we always recommend a demo account (“paper-trading”) until you become familiar with how to use the indicator.

The Trading Zone indicator is a non-repainting indicator (the signals do not change or disappear after bar close).
When using the Alert function, use the “Once Per Bar Close” configuration and wait for bar close to confirm entry/exit signal.
Release Notes: Trading Zone v1.1
- Updated script for how to generate trade alerts for the Signal Line (signal color transition).
- Minor name change of the alert types.
Invite-only script

Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact TradingCanyon for more information, or follow the author's instructions below.

Please note that this is a private, invite-only script that was not analyzed by script moderators. Its compliance to House Rules is undetermined. TradingView does not suggest paying for a script and using it unless you 100% trust its author and understand how the script works. In many cases, you can find a good open-source alternative for free in our Community Scripts.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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