GRAY ZONE Series

The Gray Zone is a prominent indicator used by Price Action traders to determine the dominant force in the market. It provides insights into who has control over the price movement. The interpretation of the Gray Zone indicator is as follows:

1. - When all the green bars are located outside the gray zone and all the red bars are inside the gray zone, it suggests that the Bulls (buyers) are in complete control of the market at that particular point in time.
2. - If the green bars are stepping down from the top, it indicates that the Bulls are still in control, but the momentum is decreasing. This suggests a potential weakening of the bullish trend.
3. - Conversely, if the green bars are stepping up, it signifies that the Bulls are in control, and the momentum is increasing. This indicates a potential strengthening of the bullish trend.
4. - When both the red and green bars are located outside the gray zone, it implies that the market is in a state of contention, with the Bulls and Bears (sellers) fighting for control.

The Gray Zone indicator can be applied to short trading as well, with the opposite interpretations. For example, if all the red bars are outside the gray zone and all the green bars are inside the gray zone, it suggests that the Bears are in control of the market.

It's important to note that the Gray Zone indicator is specific to the TradingView platform and provides valuable insights into the balance of power between buyers and sellers in the market based on their presence within or outside the gray zone.