The Zero Lag MACD MT4 indicator is based on the traditional MACD indicator but this one comes without lag.
It’s a very popular forex indicator among traders due to its zero lag feature.
Trading this indicator is pretty simple:
Zero Lag MACD histogram bars above the zero level indicate the trend is up and currency traders look to buy.
Zero Lag MACD histogram bars below the zero level indicate the trend is down and currency traders look to sell.
For maximum performance, always use the MACD indicator together with a trend following indicator such as the 200 SMA, 100 EMA or Bollinger Bands.
Next is to trade the MACD in the direction of the trend.
Trend direction up? Only trade when the Zero Lag MACD histogram bars are aligned above the 0.0 level from below (short-term trend bullish).
Trend direction down? Only trade when the Zero Lag MACD histogram bars are aligned below the 0.0 level from above (short-term trend bearish).
The default indicator input settings (FastEMA, SlowEMA, SignalEMA) can be fully modified directly from the indicator’s inputs tab.
Feel free to experiment with its different settings to suit your needs.
The EUR/USD H1 chart below displays the Zero Lag MACD forex indicator in action.
Basic Trading Signals
Signals from the Zero Lag MACD MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a buy trade when the histogram bars switch position from below 0.00 to above.
Sell Signal: Initiate a sell trade when the histogram bars switch position from above 0.00 to below.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (FastEMA, SlowEMA, SignalEMA) 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 zerolag-macd-indicator.mq4 indicator 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)