Free BW Zone Forex Signals Indicator
The BW-Zone indicator applies the notion of graphic interpretation of the state of the fourth dimension of the Chaos Theory by Williams B. – zone.
Generally speaking, the state of the zone is defined in respect to the values of two indicators: Awesome Oscillator and Acceleration/deceleration.
The driving force is said to move in a particular direction as well as accelerate in that direction when the Awesome Oscillator – AO and the Acceleration/Deceleration – AC are in the same direction i.e. when they’re both green or both red.
If the BW-Zone indicator current Acceleration/Deceleration – AC and Awesome Oscillator – AO columns are green, this depicts the green zone. For the sake of clearness, the bar can be painted green.
However, if the BW-Zone indicator current Acceleration/Deceleration – AC and Awesome Oscillator – AO columns are red, it depicts the red zone. For the sake of clearness, the bar can be painted red.
In a situation where the Acceleration/Deceleration – AC and Awesome Oscillator – AO columns display different directions, the bar is painted in gray, which represents the gray zone.
BW-Zone indicator assist in maximizing/doubling/tripling gains when the market heads your way, i.e. when acceleration, price and momentum confirm that you have suitable trading conditions. Furnished with this data you can be more aggressive when zone trading.
While aggressively in the zone, it is important for a trader to know when to stop adding fresh positions. Having in mind that the market oscillates in a wavelike manner, making it rare to find 6 – 8 bars of the same color. B. Williams thus suggest that traders should stop adding fresh positions following the 5th green bar of same color (buy trend) and have a stop placed at the 5th bar’s bottom.
On the chart above, when the columns are green, it depicts a buy zone. Red columns are indicative of a sell zone, while the gray columns are used to define neutral/transition zone.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week