The Pz Absolute Gains indicator calculates how much has an instrument won or lost in percentage terms during a period of time. It is useful to identify patterns, and find oversold or overbought situations.
- Identify market patterns
- Find decisive price movements
- Be suspicious about overbought/oversold situations
It is an extremely easy to use indicator...
- The blue histogram represents winning bars
- The red histogram represents losing bars
- The blue line represents the average winning bar
- The red line represents the average losing bar
- The gray line represents the overbought/oversold level
...with straightforward trading implications.
- You can buy after an oversold bar takes place
- You can short after an overbought bar takes place
- You can buy after a decisive winning bar
- You can short after a decisive losing bar