ZeroLag Indicator is a technical analysis tool developed by the MACD indicator. It is a modified version of the latter, mainly, due to the increased speed of signal reflection. As a result, ZeroLag blocks most of the false signals. Due to these opportunities, it earned respect among traders. To install the latest version of a technical tool and test it on your trading strategy, download the program on the MTDownloads website.
Experienced traders know for sure that the vast majority of trading tools is an improved model of the long-known robots. The whole point is that the updated versions work much faster, have powerful filters for false signals, and are almost not late. Moreover, some indicators combine several programs in their work (for example, Traders Dynamic Index) providing comprehensive information about the current situation of the market.
Features of the tool
As for the ZeroLag tool, its significant advantage is that it responds much more quickly to changes in the price level than MACD. It allows the histogram to cross the zero level somewhat earlier, which is a characteristic of the advanced signals. It means that a trader has a head start in time for making a trading decision. Another advantage of this feature affects the identification of genuine differences at the moment of their appearance.
Of course, the first condition for the effectiveness of the indicator is its correct configuration. The tool must be appropriate for your strategy, using, perhaps, unique settings rather than standard parameters. If everything is done correctly, ZeroLag will signal the most favorable prices at certain times, and you will decide on the moment to enter the market.
However, along with this, we want to draw your attention to the fact that the program has disadvantages. The developers try to improve the tool, but they failed to eliminate the erroneous signals. Yes, the robot works quickly - it's a substantial advantage over MACD, but it's not worth to fully rely on the new model. No doubts, it must be used in pairs.
Optimization of the indicator
ZeroLag indicator is not included in the number of standard technical tools of trading platforms, so it must be additionally connected. On the MTDownloads website, you can download the installation file for free, and you will need the instruction, which is also on the specified site. In general, the procedure is nothing complicated, so the user of any level will cope with it.
After activation, a trader will see a window with the program’s settings, which you can see later by clicking the right mouse button on the name of the indicator in the tool list. So, as we said, it is better to work with the standard settings for the first time and make experiments only afterward (on the demo account). To notice the difference between the operation of MACD and ZeroLag, connect two tools to the chart (MACD is built-in by default).
The main difference between the standard indicator and the advanced one is in replacing the simple moving average (of the MACD) by the exponential (of Zerolag) and the set close price setting. The exponential moving average analyzes the latest prices, thereby giving out signals faster, which takes longer time periods into account. With a small delay, ZeroLag can provide a trader with a larger profit margin.
Application of the program
Since ZeroLag is an oscillator, it is often used to identify oversold/overbought zones. Also, the tool correctly demonstrates the reversal points of the trend, and they can be predicted. Along with advanced signals, this allows a trader to predict in advance - is not it a benefit?
Analysts strongly recommend using Zerolag with other indicators due to a large number of false signals. If you use it as the primary tool, you can open wrong orders and suffer a financial collapse. Like with other technical analysis tools, the tool is not that simple, because no strategy and no assistant can bring you profit until you learn to work with it correctly.
Experienced traders argue there is no need to test dozens of robots. You have to experiment with the settings of one of them, pick up a good pair to block false signals or complement with other analytical data, and you may get a good profit. On the MTDownloads site, the most popular trading robots of their latest versions are freely available. Choose the right one, download for free, and achieve financial victories in the Forex market.