Elders Safe Zone is a free MT4 indicator that can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator appears in the main MT4 chart window as a yellow colored line.
General Assumptions
- A rising yellow line indicates that the trend is rising as well (bullish).
- A declining yellow line indicates that the trend is declining as well (bearish).
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “elders-safe-zone-indicator.mq4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The example chart below displays the Elders Safe Zone mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss, and take profit strategy to trade with the Elders Safe Zone Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading, and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Trend
Does the indicator repaint? No.
Scalping Strategy: Elder’s Safe Zone + ZWinner Trend Indicator MT4
Introduction
This scalping strategy combines the Elder’s Safe Zone Forex Indicator MT4 with the ZWinner Trend Forex Indicator MT4.
The Elder’s Safe Zone Indicator helps identify optimal stop-loss levels by filtering out market noise, while the ZWinner Trend Indicator provides clear signals of trend direction and strength.
Together, they offer a robust framework for short-term trading, particularly suited for scalping strategies.
This strategy is best applied on short timeframes such as M1, M5, and M15, and is ideal for currency pairs with low spreads and high liquidity, like EUR/USD, GBP/USD, and USD/JPY.
Buy Entry Rules
- Trend Confirmation: Ensure that the ZWinner Trend Indicator histogram is green.
- Safe Zone Confirmation: Verify that the Elder’s Safe Zone Indicator is below the price, suggesting that the market is in a safe zone for buying.
- Entry Point: Enter a buy position when both indicators align, confirming a bullish trend within a safe zone.
- Stop Loss: Place a stop loss just below the recent swing low or a few pips below the entry point, depending on your risk tolerance.
- Take Profit: Set a take profit target at a predefined number of pips, such as 5–20 pips, or use a risk-reward ratio of at least 1:2.
Sell Entry Rules
- Trend Confirmation: Ensure that the ZWinner Trend Indicator is displaying red bars, indicating a bearish trend.
- Safe Zone Confirmation: Verify that the Elder’s Safe Zone Indicator is above the price, suggesting that the market is in a safe zone for selling.
- Entry Point: Enter a sell position when both indicators align, confirming a bearish trend within a safe zone.
- Stop Loss: Place a stop loss just above the recent swing high or a few pips above the entry point, depending on your risk tolerance.
- Take Profit: Set a take profit target at a predefined number of pips, such as 5–20 pips, or use a risk-reward ratio of at least 1:2.
Advantages
- Combines trend direction with optimal stop-loss placement, increasing the probability of successful trades.
- Works well in trending markets with low spreads and high liquidity.
- Helps avoid false breakouts by confirming trends within safe zones.
Drawbacks
- May generate late entries if the trend develops quickly, reducing potential profit.
- Signals can be misleading in very short-range or sideways markets.
- High frequency of trades can increase broker commissions and the cost.
- Not effective during low-volume periods, such as early Asian sessions.
Example Case Study 1 — USD/JPY M5 (Buy)
At 13:20 AM, the ZWinner Trend Indicator displayed green bars, signaling a bullish trend.
At the same time, the Elder’s Safe Zone Indicator was below the price, confirming a safe zone for buying.
A buy position was entered at 145.25.
The stop loss was placed at 145.10, and the take profit target was set at 145.45.
The trade reached the take profit level within 15 minutes, yielding a 20-pip profit.
Example Case Study 2 — AUD/USD M1 (Sell)
During the New York session at 2:10 PM, the ZWinner Trend Indicator displayed red bars, indicating a bearish trend.
The Elder’s Safe Zone Indicator was above the price, confirming a safe zone for selling.
A sell position was entered at 0.6765.
The stop loss was set at 0.6770, and the take profit target was set at 0.6740.
The trade hit the take profit level within 8 minutes, securing a 25-pip profit.
Strategy Tips
- Trade during active market sessions like London and New York for increased volatility.
- Use a demo account to practice and refine your strategy before trading with real capital.
- Monitor economic calendars to avoid trading during major news events that can cause unpredictable market movements.
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Download the “elders-safe-zone-indicator.mq4” indicator for Metatrader 4
