The 3 Level ZZ Semafor forex indicator for Metatrader 4 is a sort of zigzag indicator.
It looks for high and low prices in the trend and then marks them with 1 (short-term), 2 (medium-term) or 3 (long-term).
Number 3 is the most important Semafor level to keep an eye on.
This indicator can’t be used as a standalone. Instead, use it together with a trend following indicator such as an exponential moving average with period set at 75 or 100.
Trade in the direction of the underlying trend.
The default ZZ Semafor period settings (5, 13, 34) can be changed from the indicator’s inputs tab.
Feel free to experiment with its settings.
The GBP/USD Hourly chart below displays the 3 Level ZZ Semafor Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the 3 Level ZZ Semafor MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when the underlying trend is up and the 3 Level ZZ Semafor indicator paints number 3 below the candlestick (support).
Sell Signal: Open sell trade position when the underlying trend is down and the 3 Level ZZ Semafor indicator paints number 3 above the candlestick (resistance).
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Period 1, Period 2, Period 3, Dev Step 1, Dev Step 2, Dev Step 3) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Support | Resistance Points
Copy and paste the 3-level-zz-semafor.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)