ZoneTrade Indicator
Find out the market momentum by noticing trading zones with the ZoneTrade indicator for MT4.
Description
The ZoneTrade indicator for MT4 is a momentum indicator that tells you the overall market picture.
By displaying green, red, and grey zones, it suggests the direction of the trend. The green zone occurs when the market is in an uptrend. The red zone appears when the market is in a downtrend. Finally, the grey zone suggests neutrality, and it emerges in the upward and downward momentum.
A key point to add here is the ZoneTrade indicator doesn’t create zones or areas on the chart. Rather, it paints the candles red, green, and grey.
The good thing about the indicator is it works on all timeframes and presents you with clear buy and sell signals.
The ZoneTrade indicator can produce false signals on shorter timeframes. So, to trade with the indicator, you can locate the red or green bars on longer timeframes and then take positions on a shorter timeframe.
How to trade with the ZoneTrade Indicator?
By painting green, red, and grey zones, the ZoneTrade indicator mentions buy and sell signals.
When the indicator draws a green candle, it is a buy signal. On the other hand, when the ZoneTrade indicator draws a red candle, it is a sell signal. The grey candle adds a level of confirmation to the market’s momentum. It acts as a neutral candle, suggesting to wait for the trend to continue its path and then take positions.
The indicator follows the Bill Williams trading in the zone approach. By finding out green and red zones, you can mark exact entry and exit points.
Although the indicator works best on its own, you can use the ZoneTrade indicator with other momentum indicators like the RSI or MACD.
ZoneTrade indicator buy setup
- Locate the green bar on the chart.
- Wait for the trend to fully develop.
- Enter the trade at the green bar.
- Put a stop-loss near the low of a buying point.
- Exit the trade when the red bar appears.
ZoneTrade indicator sell setup
- Locate the red bar on the chart.
- Wait for the trend to fully develop.
- Enter the trade at the red bar.
- Put a stop-loss near the high of a selling point.
- Exit the trade when the green bar appears.
Conclusion
The ZoneTrade indicator is great for detecting the market momentum. By drawing the green, red, and grey bars, tells you the overall market sentiment. Although the indicator provides accurate buy and sell signals, you can use it with other momentum indicators for further signal confirmation.