I posted some research on zone analysis at www.futurestruth/wordpress.com. Based on this research I created a very simple system framework. Here is some trade examples and performance results for the past four years.
//Zone Program by George Pruitt// Buy when market opens in zone 1 and dips into zone 3 // Sell when market opens in zone 4 and rises into zone 2 vars: myZone1B(0),myZone2T(0),myZone2B(0),myZone3T(0),myZone3B(0),myzone4T(0); vars:oz1cz1(0),oz1cz2(0),oz1cz3(0),oz1cz4(0); vars:oz2cz1(0),oz2cz2(0),oz2cz3(0),oz2cz4(0); vars:oz3cz1(0),oz3cz2(0),oz3cz3(0),oz3cz4(0); vars:oz4cz1(0),oz4cz2(0),oz4cz3(0),oz4cz4(0); vars:myBarCount(0),buysToday(0),sellsToday(0); inputs: profitAmt$(1000),riskAmt$(500),stopEntryTime(1300); if date <> date[1] then begin buysToday = 0; sellsToday = 0; myBarCount = 1; end; if(marketPosition = 1) then buysToday = 1; if(marketPosition =-1) then sellsToday = 1; if date<> date[1] then myBarCount = myBarCount + 1; myZone1B = highD(1) + minMove/PriceScale; myZone2T = highD(1); myZone2B = (highD(1) + lowD(1))/2 + minMove/PriceScale; myZone3T = (highD(1) + lowD(1))/2; myZone3B = lowD(1); myZone4T = lowD(1) - minMove/PriceScale; //if openD(0) > myZone1B and low > myZone1B and myBarCount > 1 and sellsToday = 0 and time <> Sess1endtime then sellshort next bar at low stop; //if openD(0) < myZone4T and high < myZone4T and myBarCount > 1 and buysToday = 0 and time <> Sess1endtime then buy next bar at high stop; if openD(0) > myZone1B and low < myZone2B and myBarCount > 1 and buysToday = 0 and time < stopEntryTime then buy next bar at low limit; if openD(0) < myZone4T and high > myZone3T and myBarCount > 1 and sellsToday = 0 and time < stopEntryTime then sellshort next bar at high limit; myBarCount = myBarCount + 1; //print(date," ",time," ",buysToday," ",openD(0) > myZone1B and low > myZone1B and myBarCount > 1 and buysToday = 0); setProfitTarget(profitAmt$); setStopLoss(riskAmt$); setExitOnClose;