Price Zone Oscillator – Floating Levels – indicator for MetaTrader 5

Price Zone Oscillator indicator is based on the “Entering the Price Zone” article by Walid Khalil and David Steckler.

In our last article, we introduced a new oscillator that provides better guidance to buying and selling levels for securities: the Volume Zone Oscillator (VZO). This time, we introduce a similar, complementary indicator: the Price Zone Oscillator (PZO).

The formula for PZO depends on only one condition: if today’s closing price is higher than yesterday’s closing price, then the closing price will have a positive value (bullish); otherwise it will have a negative value (bearish).

Price Zone Oscillator = 100 x (CP/TC).

where:

CP (Closing position) = X-days EMA (± close).

and

TC (Total close) = X-days EMA (close).

Compared to the Price Zone Oscillator indicator, this version is using floating levels to find out the significant levels. To have a dynamic zero line, set both levels to 50.