About the 3 Level ZZ Semafor Indicator
The 3 Level ZZ Semafor indicator for MT4 is a swing identification tool designed to highlight potential turning points in the market.
It works similarly to a zigzag indicator by scanning price action for local highs and lows, then marking them directly on the chart.
These points help identify short-term, medium-term, and long-term price swings.
The indicator uses three numerical levels. Level 1 represents short-term fluctuations, level 2 reflects medium-term swings, and level 3 marks the most significant turning points.
Among these, level 3 carries the most weight, as it often aligns with stronger support or resistance zones.
The 3 Level ZZ Semafor is not intended to be traded on its own.
It performs best when combined with a trend-following indicator such as an exponential moving average.
By aligning Semafor signals with the broader trend, the indicator becomes a practical timing tool rather than a prediction tool.
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Download the “3-level-zz-semafor.mq4” MT4 indicator
Key Features
- Marks swing highs and lows using three distinct levels.
- Highlights major turning points with level 3 signals.
- Fully adjustable Semafor period settings.
- Designed to complement trend-following indicators.
Indicator Chart
The 3 Level ZZ Semafor indicator displays numbered markers above and below the price.
These numbers represent different swing strengths, with level 3 showing the most significant highs and lows.
The chart helps visualize potential support and resistance zones within the trend.
Guide to Trade with the 3 Level ZZ Semafor Indicator
Buy Rules
- Confirm the overall trend is bullish using a moving average.
- Wait for the indicator to plot a level 3 below the candlestick.
- Check that price holds above the trend-following average.
- Enter the buy trade after bullish confirmation on the next candle.
Sell Rules
- Confirm the overall trend is bearish using a moving average.
- Wait for the indicator to plot a level 3 above the candlestick.
- Ensure price remains below the trend-following average.
- Enter the sell trade after bearish confirmation on the next candle.
Stop Loss
- For buy trades, place the stop loss below the recent swing low.
- For sell trades, place the stop loss above the recent swing high.
- Keep the stop loss beyond the level 3 Semafor marker.
Take Profit
- Target the next level 3 Semafor point in the trend direction.
- Scale out near prior support or resistance areas.
- Trail the stop loss as new swing points form.
3 Level ZZ Semafor + Xmaster Formula Forex Scalping Strategy
This MT4 scalping strategy combines the precision of the 3 Level ZZ Semafor Indicator with the trend confirmation of the Xmaster Formula Indicator.
The goal is to catch fast and high probability moves on the M1 and M5 charts.
The Semafor plots three levels of reversal points. The number 3 signals the strongest potential turning point.
Xmaster Formula provides a clear trend direction by printing yellow up arrows during bullish momentum and yellow down arrows during bearish momentum.
This combination works well because Semafor identifies extreme swing exhaustion while Xmaster Formula filters entries in the direction of fresh trend pressure.
Buy Entry Rules
- Wait for the Semafor to print a number 3 under the candlestick.
- Wait for the Xmaster Formula to show a yellow up arrow confirming upward momentum.
- Enter a buy trade once the candle closes above both signals.
- Stop loss is placed 5 to 10 pips below the Semafor level 3.
- The take profit target is 10 to 20 pips on M1 and 20 to 35 pips on M5.
Sell Entry Rules
- Wait for the Semafor to print a number 3 above the candlestick.
- Wait for the Xmaster Formula to show a yellow down arrow confirming downward momentum.
- Enter a sell trade once the candle closes below both signals.
- Stop loss is placed 5 to 10 pips above the Semafor level 3.
- The take profit target is 10 to 20 pips on M1 and 20 to 35 pips on M5.
Advantages
- The combination filters out many bad reversal signals because both indicators must agree before entering a trade.
- Semafor highlights strong exhaustion points while Xmaster Formula confirms the trend direction, creating high probability setups.
- Perfect for fast trading on M1 and M5 charts where quick confirmation is essential.
- Signals are easy to read which helps traders avoid hesitation during fast market movements.
- The strategy adapts well to volatile pairs and active sessions where short bursts of momentum often occur.
Drawbacks
- The Semafor can repaint on lower time frames which requires patience and waiting for candle closes.
- False signals may appear during quiet market hours when the trend lacks strength.
Case Study 1
On EURUSD M1 during the London Open, the Semafor printed a number 3 below a strong bullish candle.
Two candles later, the Xmaster Formula confirmed the move with a yellow up arrow.
A buy entry was taken at 1.08940.
Price quickly accelerated upward and reached 1.08960 within one minute for a clean 20 pip gain.
The stop loss was safely below the Semafor level and never came close to being hit.
Case Study 2
On GBPJPY M5 during the New York session, the Semafor printed a number 3 above a rejection candle at a known resistance area.
Shortly after, the Xmaster Formula printed a yellow down arrow confirming the bearish momentum.
A sell entry was taken at 199.850.
Price continued dropping with strong momentum and reached 199.480 for a total of 37 pips.
The trade remained controlled throughout the move and reached the target without any retracement pressure.
Strategy Tips
- Focus only on clear number 3 signals because they mark the strongest reversal zones.
- Always wait for the yellow arrow from Xmaster Formula to avoid premature entries.
- Use this method mainly during London and New York sessions for stronger momentum.
- Stick to major pairs like EURUSD, GBPUSD, USDJPY and volatile cross pairs only when spreads are acceptable.
- On M1 charts, aim for quick profits and avoid holding for long swings.
- On M5 charts, look for slightly larger moves with tighter filtering and cleaner market structure.
- Consider trailing your stop loss once price moves at least 10 pips in your favor.
Download Now
Download the “3-level-zz-semafor.mq4” Metatrader 4 indicator
FAQ
Why is level 3 more important than the other levels?
Level 3 marks broader market swings and often aligns with stronger support or resistance compared to short-term fluctuations.
Which trend indicator works best with this tool?
Exponential moving averages such as the 75 or 100 period EMA work well to define overall market direction.
Summary
The 3 Level ZZ Semafor MT4 indicator is a useful companion for identifying meaningful price swings within an established trend.
Separating short-term noise from more significant turning points helps refine trade timing and location.
When combined with a solid trend filter, the indicator can improve entry precision and trade management.
Adjusting the Semafor settings and practicing patience around level 3 signals can further enhance its effectiveness.
