Zone Trading Analysis

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This framework is not just a tool for developing day trading systems, but the logic and coding can help you become a better EasyLanguage programmer.

Breakout and counter-trend trading has been the most popular and successful day trading mechanism for many, many years. Basically, it tries to capture big trend days through breakouts and counter-trend moves through intraday reversals. If the market were to constantly break higher or lower and continue, then day trading would be like an ATM. Unfortunately, the market brings chaos into the mix and has breakouts and false breakouts and market congestion. As long as the pits were alive and well, the locals could use simple math to determine the price levels at which the markets could turn and reverse course or if these levels were entered with some level of enthusiasm then a trade was being set up. of impulse. These levels were labeled as individual support and resistance levels (like the ones on the chart above). A resistance level is a price that the price should have a hard time crossing above, and a support level is one that the price should have a hard time crossing below. Combining momentum and countertrend mechanisms into a single strategy has been around since the 1980s. Richard Saidenberg together with John Ehlers/Mike Barna created very successful day trading systems with names like R-Breaker, R-Levels, and R- Desk. Many other traders used the same concepts and also created very successful algorithms; some leaned more on breakout or countertrend entries. Initially, the success of these algorithms lay in the crowd mindset, as many day traders in the pits and in front of screens were looking at the same thing simultaneously – it was a self-fulfilling prophecy. However, as more merchants started using these tiers, the magic faded. These levels became traps and the strength of this day trading approach faded. Still, the synergy of the breakout and countertrend approach was still a great approach and the only game in town. Traders began to derive their own levels and timed entries and exits based on the markets' interaction with these levels. Many traders incorporated risk measures by monitoring daily volatility and derived potentially higher probable trades by overlaying daily bar patterns.

The support library

The code used to develop these types of algorithms can be quite complicated, especially for a less experienced EasyLanguage programmer. For this reason, I have created this framework. The code is fully explained at the end of the manual, and a video on using the framework is included to reflect your own observations on the graph and in the code. The framework is not just a tool for developing day trading systems, but the logic and coding can help you become a better EasyLanguage programmer.

Easy to learn and use nomenclature

"z1topca," = crossing above the top of zone 1

"z1topcb," = cross below the top of zone 1

"z2topca," = cross over the top of zone 2

diaZoneOpen = "z0"

diaZoneOpen = "z1"

diaZoneOpen = "z2"

diaZoneOpen = "z3"

openZoneDay = "z4"

dayZoneOpen = "z5"

Can you write this?

if dayOpenZone = "z2" and

last4Lev = "z2topca,z2topcb,z3topcb,z3topca," and

zoneArray[z2Buy] = 0 then

begin

buy("Z2VidBuy") next bar on open;

zoneArray[z2Buy] = 1;

final;

Can you write this?

if dayOpenZone = "z7" and // between s3 and s4

last1Lev = "z7botcb", and

zoneArray[z8Short] = 0 then

begin

sellShort("Z8-SBO") next bar on open;

zoneArray[z8Short] = zoneArray[z8Short] +1;

final;

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