As the name of the indicator suggests, the Colored Zerolag MACD Metatrader 5 forex indicator uses an histogram and signal line to generate buy and sell trading signals without lag.
It should be noted that the added coloring of the histogram bars are done relative to the previous bar.
The indicator is essentially a Moving Average Convergence/Divergence (MACD), with zero delay plus coloring.
With this in mind, currency traders are sure of receiving market alerts several bars earlier.
There is the lime and red histogram that represents growing and decreasing MACD respectively, while the blue line depicts the signal line.
The indicator shares a lot of similarities with the traditional MACD, and users can also adopt the techniques the latter uses in distinguishing possible market directions.
The EUR/JPY H4 chart below displays the Colored Zerolag MACD Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the histograms (lime & red) and blue signal line of the Colored Zerolag MACD Metatrader 5 forex indicator pops up above the zero signal level.
Sell Signal: Go short when the histograms (lime & red), along with the blue signal line of the Colored Zerolag MACD Metatrader 5 forex indicator gets aligned below the zero signal level.
Exit buy trade: Close all buy orders if while a bullish trend is running, the blue signal line of the Colored Zerolag MACD indicator breaks below the zero center barrier.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the blue signal line of the Colored Zerolag MACD indicator surges above the zero center line.
Tips: Considering the indicator delivers faster signals than the traditional MACD, scalpers can take advantage of this when trading on smaller timeframes.
Long term traders are also assured of hooking up to trends in a timely manner.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (FastEMA, SlowEMA, Signal EMA), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Far-MACD-Colored-ZeroLag.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)