Dan Zanger Master Trading System [Premium]

Dan Zanger Master Trading System [Premium]

Overview

This indicator implements the legendary trading methodology of Dan Zanger, who famously turned $10,775 into over $42 million using pattern recognition and volume analysis. The system combines professional-grade pattern detection, volume analysis, and risk management into a comprehensive trading solution.

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Core Features
1. Zanger Volume Ratio (ZVR)

The cornerstone of Zanger's methodology—volume confirms everything.
- Dynamic volume classification: Extreme (≥2x), High (≥1.65x), Moderate (≥1.25x), Low
- Bar coloring by volume intensity for instant visual feedback
- Volume dry-up detection: Identifies when volume contracts to <50% of average—Zanger's key signal that precedes explosive breakouts

2. Pattern Detection Engine
Automatically detects Zanger's favorite chart patterns:

• 🚩 Bull Flag - 15%+ pole with orderly 20-50% retracement, downward-sloping flag, declining volume
  
• ☕ Cup & Handle - U-shaped recovery (12-35% depth), handle in upper half, no undercut of cup low
  
• △ Ascending Triangle - Flat resistance with higher lows, converging range, multiple resistance touches
  
• ▽ Descending Triangle - Flat support with lower highs (bearish warning)
  
• ◇ Symmetrical Triangle - Converging trendlines with contracting volume
  
• ▬ Flat Base - Tight consolidation (<15% range), price near highs, volume drying up
  
• ═ Channel - Up/Down/Horizontal channels with parallel bounds
  

3. Trend Analysis

• Four Moving Averages: 10/20/50/200-period (selectable: SMA, EMA, WMA, VWMA)
  
• Trend Score (0-100): Quantifies trend strength based on MA positioning and direction
  
• Golden Cross/Death Cross detection with visual markers
  

4. Zanger-Style Breakout Detection
Breakouts require ALL of these conditions:
- ✅ Price exceeds resistance with conviction
- ✅ Volume confirms (≥1.5x average)
- ✅ Strong close (upper 25% of bar range)
- ✅ Above rising 50-day MA
- ✅ Preceded by volume dry-up (ideal)

5. "Never Chase" Protection
Zanger's #1 rule implemented: Warns you when price is >5% above breakout level. This prevents costly chasing entries.

6. Risk Management System
Built-in position management following Zanger's rules:

• Stop Loss: Default 7% (Zanger uses 5-7%)
  
• Profit Target 1: 15% (take partial profits)
  
• Profit Target 2: 30% (let winners run)
  
• Trailing Stop: Activates after PT1, trails at 10% from highs
  
• Visual stop loss and profit target lines on chart
  

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Dashboard

Real-time information panel showing:

• Current ZVR value and classification
  
• Volume dry-up status
  
• Trend score and bias
  
• MA positioning
  
• Active pattern detection
  
• Current signal status
  
• Position P&L and stop levels
  

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Alert System
15+ configurable alerts including:

• Pattern breakouts (Bull Flag, Cup & Handle, Triangles, Flat Base)
  
• Extreme volume detection
  
• Volume dry-up alerts
  
• Stop loss/trailing stop triggers
  
• Profit target notifications
  
• Chasing warnings
  

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Settings
Fully customizable parameters:

• ZVR thresholds and lookback
  
• MA types and lengths
  
• Pattern detection toggles
  
• Breakout sensitivity
  
• Stop loss and profit target percentages
  
• Visual styling and colors
  

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Zanger's Key Principles Implemented

• Volume is King – Every breakout requires volume confirmation
  
• Never Chase – Built-in warning when >5% above breakout
  
• Cut Losses Quickly – 5-7% stop losses
  
• Let Winners Run – Trailing stops after first target
  
• Trade with the Trend – Only buy above rising 50-day MA
  
• Volume Dry-Up – Best breakouts follow volume contraction
  
• Strong Closes – Look for closes in upper 25% of bar
  

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Best Practices

• Use on daily charts for swing trading (Zanger's primary timeframe)
  
• Works on stocks with adequate volume (avoid illiquid names)
  
• Combine with market analysis (Zanger trades strong markets)
  
• Wait for pullbacks when chasing warning appears
  
• Honor your stops – capital preservation is priority
  

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Disclaimer

This indicator is for educational purposes. Past performance does not guarantee future results. Always do your own research and use proper risk management.