Adaptive Price Zone - APZ

AAA

DEFINITION of 'Adaptive Price Zone - APZ'

A technical indicator that helps investors identify possible market turning points. The adaptive price zone (APZ) can be especially useful in a sideways-moving market. This indicator attempts to signal significant price movements by using a a set of bands based on short-term, double-smoothed exponential moving averages. It can help day traders profit in volatile markets by signaling price reversal points, which can indicate potentially lucrative times to buy or sell. The APZ can be implemented as part of an automated trading system.

INVESTOPEDIA EXPLAINS 'Adaptive Price Zone - APZ'

Technical analysis is one of two major methods for making stock-trading decisions. Whereas fundamental analysis looks at the value of the company behind the stock, technical analysis ignores this completely and focuses solely on price movements. Technical traders use charts and other tools to analyze a stock's price and trade volume and predict how a stock will move.



RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Technical Analyst

    A technical analyst, or technician, is a securities researcher ...
  3. High-Frequency Trading - HFT

    A program trading platform that uses powerful computers to transact ...
  4. Chartist

    An individual who uses charts or graphs of a security's historical ...
  5. Head And Shoulders Pattern

    A technical analysis term used to describe a chart formation ...
  6. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
RELATED FAQS
  1. Is technical analysis used only to analyze stocks?

    The simple answer to this question is definitely not. This form of analysis can be applied in more situations than you may ... Read Full Answer >>
  2. What do the bracketed numbers following a technical indicator mean?

    In technical analysis, it is common to see a series of numbers following a given technical indicator, usually in brackets. ... Read Full Answer >>
  3. What is the difference between fundamental and technical analysis?

    These terms refer to two different stock-picking methodologies used for researching and forecasting the future growth trends ... Read Full Answer >>
  4. Can technical analysis be called a self-fulfilling prophecy?

    This has been a topic of much controversy since the invention of technical analysis, and it remains a very heated debate. ... Read Full Answer >>
  5. When does the fixed charge coverage ratio suggest that a company should stop borrowing ...

    Since the fixed charge coverage ratio indicates the number of times a company is capable of making its fixed charge payments ... Read Full Answer >>
  6. How can a company execute a tax-free spin-off?

    The two commonly used methods for doing a tax-free spinoff are either to distribute shares of the spinoff company to existing ... Read Full Answer >>
Related Articles
  1. Active Trading

    3 Technical Tools To Improve Your Trading

    Find out how volume, the Aroon indicator and Fibonacci numbers can improve your profits.
  2. Trading Strategies

    Adaptive Price Zone Technical Indicator Explained

    In a choppy market, following charts can be extremely difficult - the APZ technical indicator may become your best friend.
  3. Fundamental Analysis

    Fundamentals And Technicals: Together At Last

    It's a big mistake for a fundamental investor to ignore technical analysis. Find out how to become chart smart.
  4. Active Trading Fundamentals

    Finding Short Candidates With Technical Analysis

    Learn how to distinguish tops and bottoms in the equity market when short selling.
  5. Charts & Patterns

    Avoid The Perfection Trap In Trading

    Avoid the perfection trap and make peace with the market’s high levels of systematic noise.
  6. Options & Futures

    How To Hedge Call Options Using Binary Options

    Here is a step-by-step walk through how to hedge a long call position with binary options.
  7. Professionals

    DCF Vs. Comparables: Which One To Use

    DCF and Comparables models are widely used in equity valuation. We explain the pros and cons of each method.
  8. Trading Strategies

    Adjust Market Strategies To Elevated Risk

    Improve returns by adapting trading strategies to changing market conditions.
  9. Trading Strategies

    Pros And Cons Of Paper Trading

    Most market novices should paper trade for a considerable amount of time, despite key drawbacks.
  10. Chart Advisor

    Looking To The Mega Caps For Strength

    Increased volatility is making it difficult to find areas of strength in the market. Even utilities are breaking below key support levels. The mega caps could be the answer.

You May Also Like

Hot Definitions
  1. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  2. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  3. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  4. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  5. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  6. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!