Gann SQ9 2 Indicator, MT4

ZeroLag MACD explores the bearish and bullish trend of the market using 3 separate EMAs with different parameters. It applies 12-period fast EMA, 24-period slow EMA and 9-period signal EMA to calculate MACD value.

This indicator applies a similar formula used to calculate MACD volume. For example, it subtracts the slow EMA (26 periods) from the fast EMA (12 periods) to determine the MACD value. Later, he uses the 9-period signal EMA to smooth out the MACD trend signals.

The momentum of the market trend is determined depending on the positive/negative value of the MACD. For example, MACD histogram bars moving above the zero line indicate that the market trend is in a bullish state. When the market trend turns bearish, the histogram bars begin to fall and move below the zero line.

In addition to the histogram bars, in the indicator window you will also find the slope of the moving average in red. This tool is an EMA signal with a period of 9. It shows the true value of the MACD. So, wait for the histogram bars and signal EMA to cross the zero line together for better trend confirmation. For example, the histogram bars become positive, but the signal EMA has not risen above the zero line yet. This means that the market momentum is turning bullish but has not yet confirmed the trend. When both the histogram and the signal EMA become positive, we consider the market trend as bullish and look for opportunities to enter a long position.

The main role of the ZeroLag MACD alert is to filter trading setups. For example, you notice a solid bearish pin bar at the top of the chart but are still unsure whether to go short. Interestingly, you can easily avoid such misunderstandings just by looking at the MACD momentum signals. If the indicator shows a negative value, it means that the momentum is bearish and the bearish pin bar is valid as a sell signal.

Conclusion

Zero Lag MACD is a flexible momentum indicator. You can use it to trade all types of online trading instruments including forex, stocks, commodities and more. Apart from providing momentum signals, it also helps you predict the market range using its histogram bars.