About the Elders Safe Zone Indicator
The Elders Safe Zone Indicator for MT4 is a trend-following tool designed to help traders identify market direction and potential trade opportunities.
Displayed as a yellow line in the main MT4 chart window, it provides a visual reference for bullish and bearish trends.
When the yellow line rises, it signals a bullish trend and potential buy opportunities.
Conversely, a declining yellow line signals a bearish trend and possible sell setups.
Traders can use this indicator both for entering and exiting trades or as a confirmation tool alongside other strategies.
Its simple yet informative signals make it suitable for multiple trading styles and timeframes, helping traders enhance decision-making and trend analysis.
Free Download
Download the “elders-safe-zone-indicator.mq4” indicator for MT4
Key Features
- The yellow line tracks the trend direction in the main MT4 window
- Signals both trade entry and exit opportunities
- Serves as a confirmation tool for other trading strategies
- Adaptable to all currency pairs and multiple timeframes
- Easy-to-read trend indication for both bullish and bearish markets
- Helps traders align trades with prevailing market momentum
Indicator Chart
The chart below shows the Elders Safe Zone Indicator in action on an MT4 chart. The yellow line reflects the current trend direction.
A rising yellow line indicates upward momentum, suggesting potential buying opportunities.
A declining yellow line signals downward momentum, indicating possible sell setups.
Traders can monitor these changes to optimize entries, exits, and confirmation of other strategies.
Guide to Trade with Elders Safe Zone Indicator
Buy Rules
- Enter a buy trade when the yellow line starts rising
- Confirm trend alignment with a higher timeframe if possible
- Combine with support levels or other indicators for more reliable entries
- Maintain the position until the yellow line flattens or begins to decline
Sell Rules
- Enter a sell trade when the yellow line starts declining
- Check for trend alignment and market conditions before entry
- Use resistance levels or other indicators for confirmation
- Close or reverse the position when the yellow line starts rising again
Stop Loss
- Set stop loss beyond the recent swing high for sells or swing low for buys
- Adjust according to market volatility and recent price action
- Allow sufficient room to avoid being stopped out by normal fluctuations
Take Profit
- Target recent swing highs/lows or nearby support/resistance levels
- Consider partial exits as price approaches key zones
- Use trailing stops to follow the trend if it continues in your favor
Practical Tips
- Use higher timeframe trend confirmation to improve entry reliability
- Monitor the yellow line slope to gauge trend strength
Scalping Strategy: Elder’s Safe Zone + ZWinner Trend Indicator MT4
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.
Download Now
Download the “elders-safe-zone-indicator.mq4” indicator for Metatrader 4
FAQ
How does the indicator show trend direction?
A rising yellow line signals bullish momentum, while a declining line indicates bearish momentum, helping traders align their trades accordingly.
Can it be combined with other strategies?
Yes, it works well as a confirmation tool alongside other indicators or trading systems to increase the accuracy of entries and exits.
Summary
The Elders Safe Zone Indicator for MT4 helps traders follow market trends by showing the direction and strength of momentum through a yellow line.
It can be used for entries, exits, or as a trend confirmation tool.
Its adaptability across multiple currency pairs and timeframes makes it a useful tool for various trading strategies.
Combining it with other indicators and proper risk management can help traders make better decisions and capture profitable market movements.
