Zone Shift Breakouts and Trend-Start Retests

Summary

Zone Shift is a channel indicator that combines two moving-average-style calculations into a middle line and places upper and lower bands around it using the average high-low range over 200 bars. A bullish regime begins when the current low moves above the upper band after the previous low was below its band; the bearish condition mirrors this at the lower band. The indicator colors candles by regime and records the price at the flip as a trend-start level.

Diamond markers identify later crossings of that level in the regime’s direction, with at least five bars between markers and an ATR-based visual offset. The document also suggests watching pullbacks toward the middle line as possible continuation areas. It gives calculation rules and implementation code, but no backtest, performance data, or comparison with other methods. The length input is clamped to a stated range, and the described signals are indicator conditions rather than evidence of profitable trades. Retests and band escapes can fail, so the material does not establish standalone entry, exit, or risk rules.

Key ideas

• The middle line averages a slower EMA-style calculation and a faster HMA-style calculation.
• The upper and lower bands offset the middle line by a 200-bar average of the high-low range.
• A regime flips when price crosses beyond a band under the specified current- and prior-bar conditions.
• The trend-start price is tracked, and later crossings can generate direction-colored retest markers.
• The document describes indicator behavior but provides no performance testing or complete trade-management rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.