This is an update to my earlier script, CDC ActionZone V2
The two scripts works slightly differently with V3 reacting slightly faster.
The main update is focused around conforming the standard to Pine Script V4.
## How it works ##
ActionZone is a very simple system, utilizing just two exponential moving
averages. The 'Zones' in which different 'actions' should be taken is
highlighted with different colors on the chart. Calculations for the zones
are based on the relative position of price to the two lines and the
relationship between the two EMAs
CDCActionZone is your barebones basic, tried and true, trend following system
that is very simple to follow and has also proven to be relatively safe.
## How to use ##
The basic method for using ActionZone is to follow the green/red color.
Buy when bar closes in green.
Sell when bar closes in red.
There is a small label to help with reading the buy and sell signal.
Using it this way is safe but slow and is expected to have around 35-40%
accuracy, while yielding around 2-3 profit factors. The system works best
on larger time frames.
The more advanced method uses the zones to switch between different
trading system and biases, or in conjunction with other indicators.
Buy when blue and between price and is visible,
if not Buy on Green and vise-versa
Set up a long-biased grid and trade long only when actionzone is in
green, yellow or orange.
change the bias to short when actionzone turns to te side
(red, blue, aqua)
(Look at colors on a larger time frame)
## Note ##
The price field is set to close by default. change to either HL2 or OHLC4
when using the system in intraday timeframes or on market that does not close
( ie . Cryptocurrencies)
## Note2 ##
The fixed timeframe mode is for looking at the current signal on a larger time frame
ie . When looking at charts on 1h you can turn on fixed time frame on 1D to see the
current 'zone' on the plotted on to the hourly chart.
This is useful if you wanted to use the system's 'Zones' in conjunction with other
types of signals like , for example.
- New signal ribbon so you no longer need to squint
- New toggles
- New alerts for Bullish and Bearish zones (will add alerts for all zones later)
- Text label are now turned off by default, you can turn it on in the settings menu
- Buy and Sell Ribbon can be moved to the bottom / top and hidden
- More alerts! for each different zones, plug this in to your bots as you like
- Added momentum based analysis for addition buy and sell signals. Adjust the strictness of the additional signals in the settings.
- the new signals are hard-coded, but that can be change to user inputs! just scroll down the code and comment/uncomment the lines under // Momentum signals //
Change syminfo.ticker to syminfo.tickerid to avoid calling the wrong chart
- Aesthetic fix
- Turn signal Ribbon default to off by default to avoid confusion
- Turn text box on by default by popular request. Users can still turn these features on and off in the settings.
- Added a few more comments
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.
But for vanilla use, you'll want to stick to just green and red.