Most technical analysis tools help traders to identify price entry points and if the tool is good enough it will help the trader to catch the trend from the beginning.

But most of the time leading technical analysis tools will put the trader in a position where the trend does not last for a long time. The reason for this might be lack of sentimental power. That is why it is important for any trader to have a tool that measures sentimental force inside the market.

At Technical Analysis of Stocks and Commodities Magazine Mr. Walid Khalil, MFTA, CFTe, CETA introduced his Sentimental Zone Oscillator (SZO) as a solution for this problem.

How does it work

• SZO finds the percent of the number of up closing price bars relative to all the bars in a previous period of time.
• When the SZO goes above +7 or +9, it indicates extreme optimism as there is more buyers than sellers and this could be the beginning of a new downtrend.
• When the SZO goes under -7 or -9, it indicates extreme pessimism as there is more sellers than buyers and this could be the beginning of a new uptrend.
• Default number of candles used in calculation is 14 candles and we suggest not changing it except for a good reason.
• As a leading oscillator, divergence between the price line and SZO could help you to find a reversal area in trend direction faster.

Features

• Users can switch between both ordinary and dynamic levels.
• Buy, Sell arrows to help identifying SZO pessimism, optimism signals.
• Sound, email alerts depending on user choice.
• Well-designed style that users can control.

Settings

SZO Line Inputs

• PZO Price: price used in calculation (Open, High, Low…). Default is Close.
• PZO Bars: number of bars or candles used in calculation. Default is 28 bars.
• PZO Width: Default is three.

SZO Dynamic or Fixed Levels Settings

• Choose Levels Style [Dynamic / Fixed]: switch between using ordinary fixed levels and dynamic levels. Default is Dynamic.
• Extreme Over Bought Fixed Value: Default is +9.
• Over Bought Fixed Value: Default is +7.
• Med Line Value: Default is Zero.
• Over Sold Value: Default is -7.
• Extreme Over Sold Value: Default is -9.

SZO Arrow alert & e-Mail Inputs

• Show or Hide Arrow Signals: choose to show or hide SZO signals. Default is show.
• alert: Users can choose to see an alert message when a new trading signal appears on the chart (default is yes).
• Send email: Users can choose to see an email to his inbox when a new trading signal appears on the chart (default is no).
• Send Notification: Users can choose to send push notifications to the mobile terminals (default is no).

Color Settings

• Extreme Over Bought & Buy Arrow Color: Default is blue.
• Over Bought & SZO Color: Default is aqua.
• Midline Color: Default is goldenrod.
• Over Sold Color: Default is violet.
• Extreme Over Sold & Sell Arrow Color: Default is red.