PZ Lopez Pressure
- Göstergeler
- PZ TRADING SLU
- Sürüm: 1.2
- Güncellendi: 9 Ağustos 2019
- Etkinleştirmeler: 20
This indicator anticipates price reversals analyzing bullish and bearish pressure in the market. The buying pressure is the sum of all the accumulation bars over a certain number of days, multiplied by the volume. The selling pressure is the sum of all of the distribution over the same number of bars, multiplied by the volume.
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The indicator ratio gives you a measure of the buying pressure as a percentage of the total activity, which value should fluctuate from 0 to 100. It implements two moving averages, fast and slow, to identify changes in pressure trends and look for trades accordingly.
- A ratio of 50 means the market is balanced
- A ratio over 70 means the market is overbought
- A ratio below 30 means the market is oversold
- The red dotted line is the current ratio
- The blue line is the signal line
- The orange line is the main line
It has straightforward trading implications.
- Look for buying opportunities when the market is oversold
- Look for selling opportunities when the market is overbought
- If the signal line is above the main line the pressure is bullish
- If the signal line is below the main line the pressure is bearish
Input Parameters
- Period: Number of bars studied to calculate the pressure
- Fast MA: Fast averaging period for the histogram
- Slow MA: Slow averaging period for the histogram
Author
Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.