ARTICLE SYNOPSIS ...Here's a look at the volume zone oscillator, which can be applied to trending and nontrending markets. Find out how it can be used to trade the Djia, Spy, and gold....
ARTICLE SYNOPSIS ...In our last article, we introduced a new oscillator that provides better guidance to buying and selling levels for securities: the volume zone oscillator (Vz o). This time, we introduce a similar, complementary indicator: the price zone oscillator (Pz o). See sidebar, "Price Zone Oscillator," on page 29. The formula for Pz o depends on only one condition: If today's closing price is higher than yesterday's closing price, then the closing price will have a positive value (bullish); otherwise it will have a negative value (bearish)....