Traders and investors using technical analysis are familiar with Bollinger Bands, Donchian Channels, and other trading envelopes.  All of these are derived from formulas that are static:  a moving average is calculated, normally 30 day.  (Call the number of days "x factor").

Then a percentage or a standard deviation or a range value is added to and subtracted from this MA (moving average).  (Call this the +/- "y factor").  This creates a line above and a line below the Moving Average - - - and thus you have your bands or channels or envelopes.  These "x" and "y" factors do not change over time.  If the user does re-set his own "x’ or "Y", the entire data string is altered by that amount.

The major problem with these indicators is that they do not use 21^st century technology.  Today there are algorithms designed to be dynamic.  The E-Zone System calculates and applies an "x factor" and a "y factor" that are not static or fixed.  Instead, each factor is dependent on other values, and changes according to current conditions in the market being studied.  Thus the entry and exit zones generated by this dynamic System also are more closely aligned with current conditions.

The E-Zone System can chart anything that has a data stream: stocks, options, mutual funds, ETF’s, Forex currency pairs, commodity futures.  It read trends, slopes, volume, and volatility from the data stream, and from these T,S,V,V values determines the best "X factor" and the best "y factor".  These dynamic numbers provide a chart that is more timely and more accurate.

The E-Zone System holds a second improvement over static bands, channels, and envelopes which show only past history: it projects ahead by one trading period.  The user receives an entry zone and an exit zone for the next trading session.  The duration of the trading period so charted is determined by the duration of the data stream period.  This can be in number of ticks, or in minutes, or days, or weeks.

These entry and exit zones for the next trading period are not just straight line projections that might be extrapolated from a band, channel, or envelope chart.  Instead, the E-Zone projections are calculated dynamically, and show excellent correlation between the predicted and the actual next period high and low.