AIO Indicator — How to use Accumulation Zone
I would like to explain in detail about functionAccumulation Zone of myAll In One Price Action Indicator (TradingView)& give an example of how I use it to trade. This is one of my favorite indicators.
ACCUMULATION ZONE
In Trading there are 4 typical phases:
Manipulation: Long/Short Stop Raid
(Retail Traders are usually raided in this phased)Accumulation/Reaccumulation: Long/Short Positions Built-Up
Range Expansion: Dynamic Price Imbalance
Distribution: Long/Short Exit Zone
In Manipulation/Accumulation/Reaccumulation model: The market tends to reprice the higher/lower to the old high/low or imbalance/fair value price to promote buy/sell stops or to provide smart money pricing for long/short entries. Typically, it redistributes quickly and you must learn to anticipate them at key levels intraday. Weak short/long holders will be squeezed in the retracement.
Examples:
Keep in mind that except for the daily open price, the price changes continuously until the closing time, so the accumulation area also be changed in real-time, so please don’t depend only on it to take buy/sell signal. Besides, the accumulation zone does not have to fill for the day.
In short, the price needs time to be accumulated, I usually don’t pay attention to this daily zone till London open/close or New York sessions.
If you use it in combination with other information when analyzing, you can predict/determine whether the zone has been established or not with high probability.
Not only the daily zone, but the indicator also supports higher timeframes accumulation zone from [Auto→D→W→M→3M→6M→12M]. I personally use the daily one the most.
You can change the color and the line width of the zone if you like. By default, the borderline of the zone is displayed, if you don’t want to display it just set the line width value to 0.
Please read the full article about my AIO — All In One Price Action Indicator below for more information & other functions of my indicator.
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Nguyen Tran