SentimentZone

Description

The Sentiment Zone strategy is based on values of Sentiment Zone Oscillator (SZO) and their relation with dynamic overbought and oversold levels.

The strategy adds a BUY_AUTO order when any of the following conditions is fulfilled:

  • 30 period SMA of SZO crosses above the zero level and price is higher than its 60 period EMA.

  • SZO is below the oversold line, its 30 period SMA is rising and price is higher than its 60 period EMA.

  • SZO crosses above the oversold line, its 30 period SMA is positive and 60 period EMA of price is rising.

The strategy adds a SELL_AUTO order when any of the of the following conditions is fulfilled:

  • 30 period SMA of SZO crosses below zero.

  • SZO crosses below the "+7" level while its 30 period SMA is declining.

Input Parameters

Parameter Description
price The price used in main plot calculation.
length The number of bars used in main plot calculation.
long length The number of bars used in calculation of overbought and oversold levels.
percent The percentage used in calculation of overbought and oversold levels.

Further Reading

1. "Sentiment Zone Oscillator" by Walid Khalil. Technical Analysis of Stocks & Commodities, May 2012.

Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, and there is no guarantee that the same strategy implemented today would produce similar results.

Technical analysis is not recommended as a sole means of investment research.

For educational purposes only. Not a recommendation of a specific security or investment strategy.

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