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Miha Kralj
2026-02-27 07:48:12 -08:00
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# APZ: Adaptive Price Zone
| Property | Value |
| ---------------- | -------------------------------- |
| **Category** | Channel |
| **Inputs** | OHLCV bar (TBar) |
| **Parameters** | `period`, `multiplier` (default 2.0) |
| **Outputs** | Multiple series (Upper, Lower) |
| **Output range** | Tracks input |
| **Warmup** | `period` bars |
### TL;DR
- APZ constructs a volatility-adaptive envelope using double-smoothed exponential moving averages with an aggressive smoothing factor derived from $\...
- Parameterized by `period`, `multiplier` (default 2.0).
- Output range: Tracks input.
- Requires `period` bars of warmup before first valid output (IsHot = true).
- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
APZ constructs a volatility-adaptive envelope using double-smoothed exponential moving averages with an aggressive smoothing factor derived from $\sqrt{\text{period}}$, making it significantly faster than standard EMA-based channels. The center line is a double-EMA of price; the band width is a double-EMA of the high-low range, scaled by a multiplier. Designed specifically for mean-reversion trading in non-trending markets, APZ identifies overbought/oversold extremes where price is likely to reverse rather than continue. A closing price outside the zone signals an immediate overshoot, not a breakout.
## Historical Context