This is a simple update of Lazy Bear's " Indicators: Volume Zone Indicator & Price Zone Indicator" Script. PZO plots on the same indicator. The horizontal plot lines are taken primarily from two articles by Wahalil and Steckler "In The Volume Zone" May 2011, Stocks and Commodities and "Entering The Price Zone"June 2011, Stocks and Commodities. With both indicators on the same plot it is easier to see divergences between the indicators. I did add a plot line at 80 and -80 as well because that is getting into truly extreme price/volume territory where one might contemplate a close your eyes and sell or cover particularly if confirmed at a higher time frame with the expectation of some type of corrective move..
The inputs and plot lines can be edited as per Lazy Bear's original script and follows the original format. Many thanks to Lazy Bear.
The inputs and plot lines can be edited as per Lazy Bear's original script and follows the original format. Many thanks to Lazy Bear.
Jayy
//
// @author LazyBear with Updates JRM
//
// If you use this code in its original/modified form, do drop me a note.
// How to use this indicator http://files.meetup.com/81355/VZO-PZO%20articles.pdf
study("Volume Zone Oscillator and Price Zone Oscillator", shorttitle="VZO_PZO_LB _JRM")
length=input(14, title="MA Length")
dvol=sign(close-close[1]) * volume
dvma=ema(dvol, length)
vma=ema(volume, length)
vzo=iff(vma != 0, 100 * dvma / vma,0)
dprice=sign(close-close[1]) * close
dpma=ema(dprice, length)
pma=ema(close, length)
pzo=iff(pma != 0, 100 * dpma / pma,0)
hline(80, linestyle=solid,color=green)
hline(60, linestyle=solid, color=green)
hline(40, linestyle=solid,color=green)
hline(15, linestyle=solid,color=green)
hline(0, linestyle=solid,color=black)
hline(-5, linestyle=solid,color=orange)
hline(-40, linestyle=solid,color=red)
hline(-60, linestyle=solid,color=red)
hline(-80, linestyle=solid,color=red)
plot(vzo, color=black, linewidth=1)
plot(pzo, color=maroon, linewidth=1)