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BW Zone

Developed by Bill Williams. A technical analysis indicator based on the philosophy that when in the “ZONE” it makes sense for aggressive traders to add to their current position. A Green Zone is defined when both the AC (Accelerator Oscillator) and the AO (Awesome Oscillator) are higher than their preceding histogram bars. Consequently, the corresponding bar on the price chart will be colored green (or blue). Similarly, a Red Zone is defined when both the AC and the AO are lower than their preceding histogram bars. Therefore, the corresponding chart bar will be colored red. A Gray Zone is defined when the AC and AO are of different colors. A Buy signal is generated when a Green Zone chart bar closes higher than the preceding Green Zone chart bar. Conversely, a Sell signal is generated when a Red Zone chart bar closes lower than the preceding Red Zone chart bar.