Price Zone Oscillator: Directional Price Changes
Summary
The Price Zone Oscillator (PZO) is introduced as a companion to the Volume Zone Oscillator. The text attributes its basis to an article by Walid Khalil and David Steckler, and describes its directional input: a close above the prior close contributes a bullish, positive value, while a close that is not higher contributes a bearish, negative value. In this way, the described component assigns direction according to the sign of the daily price change.
The document is incomplete: it ends after beginning to introduce the formula, so the full calculation, normalization, lookback settings, thresholds, and interpretation are unavailable. It gives no examples, testing evidence, or entry and exit rules. The directional rule alone is not enough to reproduce the complete oscillator or assess its usefulness. Readers should regard this as a partial conceptual description rather than a complete specification or validated trading method.
Key ideas
- The PZO is presented as a price-based counterpart to the Volume Zone Oscillator.
- A close above the previous close is assigned a positive, bullish direction.
- A close that is not above the previous close is assigned a negative, bearish direction.
- The document omits the rest of the formula and provides no testing or trading rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.