About the Zerolag RVI Indicator
Zerolag RVI is a technical Forex indicator developed for MetaTrader 4 that delivers buy and sell signals through a responsive oscillator.
It is based on the Relative Vigor Index concept but enhanced with a zero-lag calculation to reduce signal delay.
This makes the indicator more suitable for fast-paced trading environments.
The indicator is displayed in a separate window below the price chart as a histogram.
Green bars represent bullish momentum, while red bars indicate bearish momentum.
Color changes in the histogram help traders quickly identify potential shifts in market direction without complex analysis.
Zerolag RVI can be used as a standalone trading tool or as a confirmation indicator within an existing strategy.
It performs especially well for scalping and day trading, where timely momentum signals are critical.
Its simplicity and adaptability make it useful for both newer and experienced traders.
Free Download
Download the “color-zero-lag-rvi-indicator.ex4” MT4 indicator
Key Features
- Provides buy and sell signals via histogram color changes.
- Uses zero-lag calculations for faster signal response.
- Displayed in a dedicated MT4 indicator window.
- Effective for scalping and intraday trading.
- Works on all currency pairs and timeframes.
- Can be combined with other technical indicators.
Indicator Chart
The chart below shows the Zerolag RVI indicator plotted beneath a Forex price chart.
Green histogram bars highlight bullish momentum phases, while red bars mark bearish pressure.
Transitions between colors often align with short-term market direction changes.
Guide to Trade with Zerolag RVI
Buy Rules
- Wait for the Zerolag RVI histogram to change from red to green.
- Confirm price is not trading directly below strong resistance.
- Enter a buy trade at the close of the signal candle.
Sell Rules
- Wait for the Zerolag RVI histogram to change from green to red.
- Confirm price is not trading directly above strong support.
- Enter a sell trade at the close of the signal candle.
Stop Loss
- Place a stop loss below the nearest support level for buy trades.
- Place a stop loss above the nearest resistance level for sell trades.
- Adjust stop distance to reflect current market volatility.
Take Profit
- Close the trade when the histogram changes to the opposite color.
- Alternatively, target recent highs or lows on the price chart.
Zerolag RVI + Moving Average Trend Dashboard Forex Day Trading Strategy
This day trading strategy combines the Zerolag RVI Forex Indicator for MT4 and the Moving Average Trend Dashboard Indicator for MT4.
It is designed to capture intraday trend reversals with precision.
The Zerolag RVI indicator signals short-term momentum changes with color shifts: green for bullish and red for bearish.
The MA Trend Dashboard provides trend confirmation for your chosen timeframe with blue arrows for bullish trends and red arrows for bearish trends.
This strategy is ideal for M5, M15, and H1 charts across multiple currency pairs.
Buy Entry Rules
- Confirm the MA Trend Dashboard shows a blue arrow for your chosen timeframe, indicating a bullish trend.
- Wait for the Zerolag RVI indicator to turn green, signaling a bullish momentum reversal.
- Enter a buy trade at the close of the confirming candle.
- Set a stop loss below the recent swing low or a nearby support level.
- Take profit at a key resistance level, the opposite dashboard signal, or when the Zerolag RVI turns red.
Sell Entry Rules
- Confirm the MA Trend Dashboard shows a red arrow for your chosen timeframe, indicating a bearish trend.
- Wait for the Zerolag RVI indicator to turn red, signaling bearish momentum reversal.
- Enter a sell trade at the close of the confirming candle.
- Set a stop loss above the recent swing high or a nearby resistance level.
- Take profit at a key support level, the opposite dashboard signal, or when the Zerolag RVI turns green.
Advantages
- Combines momentum reversals with trend confirmation for higher accuracy.
- Visual signals make entries and exits clear and easy to follow.
- Works well on multiple timeframes for flexible intraday trading.
- Helps avoid trading against the prevailing trend, reducing false entries.
Drawbacks
- Requires monitoring of both indicators to avoid missed trades.
- May lag slightly in extremely fast-moving markets.
Case Study 1 – AUD/USD (M15 Chart)
On the AUD/USD M15 chart during the London session, the MA Trend Dashboard displayed a blue arrow.
Shortly after, the Zerolag RVI turned green at 0.6750, confirming bullish momentum.
A buy trade was entered at 0.6751 with a stop loss at 0.6742.
Price climbed to 0.6770 within an hour, yielding a +19-pip profit before the Zerolag RVI signaled a reversal.
This setup shows how the strategy can capture clear intraday trends.
Case Study 2 – EUR/CAD (M5 Chart)
On the EUR/CAD M5 chart, the MA Trend Dashboard showed a red arrow indicating a bearish trend.
The Zerolag RVI turned red at 1.4765, signaling momentum to the downside.
A sell trade was opened at 1.4763 with a 10-pip stop loss.
The price dropped to 1.4745 within 25 minutes, providing an 18-pip profit.
The combination of dashboard trend confirmation and momentum reversal provided a strong intraday entry.
Strategy Tips
- Focus on major currency pairs with good liquidity for smoother moves and less slippage.
- Trade primarily during active sessions such as London and New York for higher probability setups.
- Avoid entering trades when the dashboard arrow is changing frequently or the Zerolag RVI is flat near zero.
- Use trailing stops to lock in profits during strong trending moves.
- Consider analyzing higher timeframes for additional trend confirmation before entering intraday trades.
Download Now
Download the “color-zero-lag-rvi-indicator.ex4” MT4 indicator
FAQ
What makes Zerolag RVI different from standard RVI?
Zerolag RVI reduces calculation delay, allowing signals to appear faster.
This improves responsiveness in short-term trading scenarios.
Is Zerolag RVI suitable for ranging markets?
It can work in ranges, but signals may occur more frequently.
Filtering trades with support and resistance can improve accuracy.
Can Zerolag RVI be used as a confirmation tool?
Yes, it pairs well with trend indicators and price action analysis.
Many traders use it to confirm entry timing.
Summary
Zerolag RVI is a responsive MT4 histogram indicator that helps traders identify momentum shifts quickly.
Its color-based signals make buy and sell decisions straightforward and easy to follow.
This simplicity supports disciplined execution.
The indicator works well as a standalone tool or alongside other strategies.
With additional filters or alert options, its performance could be refined further.
For scalpers and day traders seeking fast momentum confirmation, Zerolag RVI is a strong technical addition.
