Sign In with Google
Sign In with Facebook
The MACD Colored Zerolag is a trading indicator made using a modification of the previous version, that is, the MACD oscillator. It was created to identify the features and patterns of price dynamics, as well as to convert the accumulated data through history. Unlike the previous version, MACD Colored Zerolag works without delay signals, which in turn are very accurate. On the chart, the indicator is represented as a colored histogram with a moving line. When trading with the indicator, it can be used any convenient timeframes and currency pairs.
Input parameters
Despite the fact that the MACD Colored Zerolag indicator is based on more accurate trading signals, unlike the classic version, it has the same input parameters as the MACD. Due to the lack of a large number of parameters, the indicator optimization will not be particularly difficult.
- -FastEMA - fast exponential moving average period value. The default value is 12.
- -SlowEMA - the period of the slow moving, which is part of the indicator. The default value is 26.
- -SignalEMA - value of the period of the signal line of the indicator. The default value is 9.
In the indicator settings, it can be also chosen a convenient color scheme and the width of the indicator values.
Indicator signals
MACD Colored Zerolag is very similar to the previous version, not only the presence of the same parameters, but also the scheme of work. The chart shows a histogram that, due to certain circumstances, crosses its level from below or above, while coloring or changing its color. Accordingly, after a certain color matches with the direction of the histogram will be the signal of the indicator.
Signal for Buy trades:
- -After crossing the level zero from the bottom up, the histogram is colored in color with the growth value.
- -At the same time, the signal line of the indicator is located just above the bars of the histogram.
After receiving these conditions, a long position is opened on a certain candle. The trade should be closed after the histogram changes color and acquires a fall value.
Signal for Sell trades:
- -After moving up, the histogram changes its direction and crosses its level from top to bottom.
- -The signal line of the indicator must be lower than the histogram.
As soon as these conditions are formed on a certain candle, a short position can be opened, which should be closed after changing the color of the histogram columns.
Conclusion
MACD Colored Zerolag is characterized by the practical absence of false signals that are formed without delay. Due to the presence of two colors of the histogram, the direction of trading can be easily determined. Trades opened using this indicator will be very profitable and fast, however, practice on a demo account is recommended before trading.
