ZeroLag MACD Indicator
Follow the ZeroLag MACD alert for making the best intraday and long-term swing trading decisions. Defines the market trend correctly. Free download available.
Description
The ZeroLag MACD is a technical forex trend trading tool for MetaTrader platforms. This MACD custom indicator generates potential trend alerts which are used to determine both intraday and long-term trading opportunities.
Besides trend-following entries, this nifty indicator can also be applied for identifying swing trading setups. Moreover, you can use its MACD alert for filtering candlestick patterns and pick the setups carrying a higher probability of success.
Furthermore, reading the ZeroLag MACD signals is very easy and can be followed by beginners besides experienced professionals. Newbie trend-following traders may find this tool extremely useful in assessing the bullish and bearish powers behind the market trend.
How to trade Forex instruments using the ZeroLag MACD trend alert
ZeroLag MACD examines the bearish and bullishness of the market trend by using 3 individual EMAs with different parameters. It applies a 12-fast EMA, 24-slow EMA, and a 9-period signal EMA for calculating the MACD value.
This indicator applies a similar kind of formula used to calculate the volume MACD. For example, it subtracts the slow EMA (24 periods) from the fast EMA (12 periods) for determining the MACD value. Later, it engages a 9-period signal EMA for smoothing MACD trend signals.
The momentum of the market trend is determined depending on the positivity/negativity of the MACD value. For example, MACD histogram bars moving above zero line means the market trend is in a bullish condition. When a market trend turns bearish, the histogram bars start to fall and moves below the zero-line.
Besides the histogram bars, you’ll also find a red color moving average slope in the indicator window. This tool represents a 9-period signal EMA. It shows the true value of the MACD. So, wait until both histogram bars and signal EMA crosses the zero-line together for a better trend confirmation. For example, the histogram bars turn positive but the signal EMA is yet to move above zero-line. It means the market momentum is turning bullish but hasn’t confirmed the trend yet. When both histogram and signal EMA turn positive, we consider the market trend as bullish and look for buy entry opportunities.
The main role of the ZeroLag MACD alert is to filter the trade setups. For instance, you spot a solid bearish pin bar at the top of the chart but still unsure about going for a short entry. Interestingly, you can easily avoid such confusions by simply looking at the MACD momentum signals. If the indicator shows a negative value it means the momentum is bearish and the bearish pin bar is valid as a sell signal.
Conclusion
The ZeroLag MACD is a flexible momentum indicator. You can apply it for trading all types of online trading instruments including forex, stocks, commodities, and more. Besides delivering the momentum signals, it also helps you in forecasting the market range by using its histogram bars.