INDICATOR
Trading Zone
A multi-indicator that shows overbought / oversold zones as well as trend directions and optimal entry and exit points. The indicator is developed for the TradingView platform.
Description - Trading Zone v1.0 [by TC]
Description
Trading Zone by TradingCanyon is a very functional indicator that can be used either as a single trading indicator, generating superior entry and exit signals; it can be successfully employed as a combined support tool for our other trading indicators. The algorithm behind this indicator is based on a combination of several momentum strategies and is capable of signaling the trend while detecting overbought and oversold levels (zones).
This indicator works very well for all instrument types and timeframes; 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.
All our indicators are 100 % non-repainting indicators. (They do not change signal after the price bar is closed.)
Key benefits
- Easy to use. The settings are optimized for use with all timeframes. You don´t need to spend a lot of time studying how the indicator works; you start making profitable trades with it right away.
- Very accurate trading signals. This indicator gives a very good overall picture of the price direction and produces high probability trading signals as well as shows trend line, trend direction, and overbought or oversold levels.
- Less time-consuming. The indicator makes trading much less time consuming than traditional trading systems, so you can spend more time doing the things you enjoy. Just set the alerts and get a push notice or trade signal straight to your phone!
- No false signals. The Trading Zone indicator is based on an algorithm that reveals an advance indication of possible shifts in momentum, allowing traders to time their moves in the market.
- High win-rate. The Trading Zone indicator has achieved very high win-rates in the backtests, performed over a historical period of 24 months.
Demo Snapshot - Trading Zone
Demo snapshot of the Trading Zone indicator displayed within a 1 H timeframe for Euro / US Dollar (EURUSD).
How to use
1. Use on any instrument and timeframe (finetune 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 zone and crosses the sell (+0.2),- or buy (-0.2) zone line.
IMPORTANT: Wait for the 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 an 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 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.
When using the Alert function, use the “Once Per Bar Close” configuration and wait for bar close to confirm entry/exit signal. The Trading Zone indicator is a non-repainting indicator (the signals do not change or disappear after bar close).
All our indicators are developed for TradingView. For more info on adding an indicator to your charts and to adjust settings, go to: How it works
Settings
The default settings for the Trading Zone indicator are optimized for use on all timeframes. If you use the indicator to trade very low or high timeframes, you may need to adjust the default settings a bit to optimize it for your trading style.
Each financial instrument has its own rhythm and oscillation, so if you want to optimize your trading results, you must learn to tweak the indicators to improve signal generation accuracy. You also need to test different settings of the indicator as this will help you fine-tune the signals. Settings can sometimes be very personal, depending on your trading style and the timeframe used. The Trading Zone indicator is developed to obtain the most optimal settings with minimal adjustment.
Different settings may apply to different instruments and also to different market periods. A more volatile market regime may require a different approach and strategy for the same instrument. You must try to find the best settings for your strategy or stick to the default settings (optimized by the TradingCanyon team).
The default settings work for all timeframes, you can try to tune the settings a bit to improve signal generation – but in most cases you can leave the default settings as it is.
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 candle close to ensure signal is a confirmed signal!
Set an alert when the signal line breaks a certain level:
Condition: Trading Zone and Signal Line
Use: “Crossing Up” or “Crossing Down” (depending on what direction)
When you set the “Condition” for the trade alert, the second row has a drop-down menu where you can select alert type/s: “Crossing Up”, “Crossing Down”. A new drop-down menu will appear where you can choose different options for the condition and alert type (it specifies what the alert condition should be based on). Select the default option: “Signal Line”.
Value: Set to a custom value (-0.5 to 0.5).
For example: If you have a short or neutral position and want to set an alert when the signal line moves up from an oversold level, you can set the following alert condition: “Crossing Up” and the value “-0.2”. Then the alert will fire each time the signal line breaks the -0.2 level from below (Crossing up).
Backtesting
Backtesting refers to applying a trading system to historical data in order to verify how a system would have performed during the specified time period and with the current data sample. Backtesting and optimizing provide many benefits to a trader, but this is only part of the process when creating a trading system or strategy. You also have to use forward testing and live trading.
Over the past 24 months, we have tested all our algorithms and indicators across a wide range of instruments and timeframes to ensure maximum and optimal performance. The results vary slightly, depending upon instrument type and timeframe used, but overall, the Trading Zone indicator has a very high average success ratio on all instruments tested. We have also successfully performed forward testing when developing the algorithms, posting high win-rates. During the last 12 months, we have also used the indicators ourselves when trading live, and with great results.
The Trading Edge indicator is an exceptional trading tool as it will generate fantastic trading signals for you! You can use the Free Trial to check it out.
FAQs
The TradingCanyon indicators are compatible with the TradingView platform.
Under the tab How it works you will find information on how to get started and how you add a TradingCanyon indicator to your chart in TradingView.
After signing up, it usually takes between an hour to a few hours to grant you access to the Invite-only scripts on TradingView.
It is a manual process done by us, and it depends somewhat on the number of inquiries/orders and the time of day. Typically during the day (CET, Central European Time), full access is granted much faster, and you will receive an email with additional instructions.
If you are missing delivery on your free trial or subscription order, please do not hesitate to contact us immediately at: [email protected]
Our algorithms were built in-house. We have extensive experience in trading and over the past 24 months have developed the algorithms by using Pine script coding (programming language at TradingView). All our indicators have passed through a vigorous back-testing process.
All our indicators generate very accurate trading signals and are used by many successful traders.
Trading in the financial markets can be challenging and they take time to learn, regardless of the high probability signals in your chart. Whether you succeed or not is entirely up to you. You will need to develop your own trading style and strategy.
By using the TradingCanyon indicators, you will increase your chances of success dramatically. Our indicators will generate very high probability signals. We have developed the indicators and trading signals to appear when there is most likely going to be a move in the market; the signals reveal when it is optimized to enter or exit a position.
If you’re new to trading and/or technical analysis in general, we recommend a demo account (“paper-trading”) until you become familiar with how it works.
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