chrysopoetics

Anchor Zones

638 views
84
638 6
L.A. Little, who wrote two books on trend trading, explained a key timing concept called anchor zones which was used, within his trading system, to enter and exit the market at appropriate times.

Anchor zones are formed from anchor bars. An anchor bar is a bar that has one or more of these components: wide range, high volume or gaps. For this script we're going to require two or more of the components. When an anchor bar forms, we'll note the high and low of the bar and draw a zone across time as prices develops. For this script, we'll also note the open and close of the candle to hint at other levels of support or resistance. The boundaries of these zones can act as support or resistance, but they also mark out the areas where price can often get trapped.

A breakout from these zones on high volume can suggest the beginning of a new trend. In general, anchor zones are a good compliment to price action strategies. For more information on how to use these, refer to L.A. Little's books.

References

https://onlinelibrary.wiley.com/doi/10.1...
https://www.tradingsetupsreview.com/anch...

Want to Learn?

If you'd like the opportunity to learn Pine but you have difficulty finding resources to guide you, take a look at this rudimentary list: https://docs.google.com/document/d/10t3Z...

The list will be updated in the future as more people share the resources that have helped, or continue to help, them. Follow me on Twitter to keep up-to-date with the growing list of resources.

Suggestions or Questions?

Don't even kinda hesitate to forward them to me. My (metaphorical) door is always open.
Remove from Favorite Scripts Add to Favorite Scripts
Top notch system. Thanks!
Reply
Looks extremely useful! Thanks for your work!
Reply
nice:)
+1 Reply
chrysopoetics RafaelZioni
@RafaelZioni, thank you very much man
Reply
Pretty neat, thanks for sharing!
+1 Reply
@wroclai, no problem, anytime
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Help Center Refer a friend Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out