About the PZ Lopez Trend Indicator
The PZ Lopez Trend Indicator for MT4 is a high-performance trend-following tool designed to identify and track market direction with exceptional accuracy.
It consists of a central dual-colored line encased within a price band formed by dotted upper and lower lines.
This indicator stands out because of its exclusive speed detection algorithm, which allows it to ignore market noise and sudden price spikes that often trigger false signals in lesser tools.
By focusing on the underlying momentum, it provides a deep sky blue line for bullish phases and a tomato-colored line for bearish trends.
Its ability to filter out intraday volatility makes it a reliable asset for those looking to ride long-term trends while maintaining precise entries on lower timeframes.
Free Download
Download the “pz-lopeztrend-indicator.ex4” MT4 indicator
Key Features
- Employs a proprietary speed detection algorithm to filter out insignificant market fluctuations.
- Features a non-repainting dual-colored line for reliable and permanent trade signals.
- Includes a price band consisting of dotted lines to help visualize the current volatility range.
- Switches between deep sky blue and tomato colors to provide clear directional bias.
- Built-in alert system within the parameters to notify traders of trend changes instantly.
Indicator Chart
The chart illustrates the PZ Lopez Trend Indicator effectively tracking a sustained price move.
The deep sky blue line highlights a strong upward trend, while the tomato color signals a definitive shift into bearish territory.
The dotted price bands provide a visual envelope for price action, helping traders stay disciplined as long as the color remains consistent.
Guide to Trade with PZ Lopez Trend Indicator
Buy Rules
- Monitor the PZ Lopez Trend Indicator for a color change from tomato to deep sky blue.
- Wait for the price to remain supported by or above the deep sky blue line.
- Confirm the signal by ensuring the current candle has fully closed with the blue color fixed.
- Enter the long position to capitalize on the emerging bullish momentum.
Sell Rules
- Monitor the PZ Lopez Trend Indicator for a color change from deep sky blue to tomato.
- Wait for the price to stay below or be rejected by the tomato-colored line.
- Confirm that the line has turned tomato and remained fixed after the candle close.
- Execute the short trade to follow the newly established bearish trend.
Stop Loss
- Place the protective stop loss a few pips below the lower dotted band for buy trades.
- Position the stop loss order just above the upper dotted band when entering a sell.
- Utilize the indicator line itself as a dynamic stop level as the trend progresses.
Take Profit
- Close all buy orders immediately if the PZ Lopez Trend Indicator line turns tomato.
- Close all sell orders immediately if the PZ Lopez Trend Indicator line turns deep sky blue.
- Consider exiting near the outer dotted bands if the price shows signs of significant exhaustion.
PZ Lopez Trend and Flat Trend RSI Forex Scalping Strategy for MT4
This scalping strategy combines the PZ Lopez Trend Indicator with the Flat Trend RSI Indicator.
The PZ Lopez Trend uses a deep sky blue line to show a buy signal and a tomato colored line to show a sell signal.
The Flat Trend RSI uses a simple color-based histogram. Blue bars show buy strength and red bars show sell strength.
This combination creates a clean and fast scalping system for M1 and M5 charts.
The strategy works well because each indicator confirms the other.
The Lopez line shows the primary short-term direction while the RSI histogram confirms momentum.
This reduces hesitation and helps filter out noisy market conditions.
It is ideal for active scalpers who prefer fast trades and small but consistent gains.
Buy Entry Rules
- The PZ Lopez Trend line must be deep sky blue.
- The Flat Trend RSI histogram must display blue bars.
- Open a long trade when both indicators agree on the direction.
- Place the stop loss a few pips below the nearest swing low.
- Set a take profit target between 6 and 12 pips, depending on the volatility of the pair.
Sell Entry Rules
- The PZ Lopez Trend line must be tomato colored.
- The Flat Trend RSI histogram must display red bars.
- Open a short trade when both indicators match in direction.
- Place the stop loss a few pips above the nearest swing high.
- Set a take profit target between 6 and 12 pips or exit when the histogram weakens.
Advantages
- The visual signals are simple to follow and easy to read on fast charts.
- The combination filters out many weak entries that appear during sideways market movement.
- Suited for traders who want multiple opportunities per session.
- Works well on currency pairs with low spreads and steady volume.
Drawbacks
- Scalping requires focus and fast execution, and this may not suit every trader.
- Spread costs can be high on pairs with poor liquidity.
- The system may struggle during very slow or highly choppy markets.
Case Study 1: EURAUD M5
During the London session, the PZ Lopez Trend line turned deep sky blue.
A few candles later, the Flat Trend RSI histogram printed strong blue bars.
A long entry was taken with a stop loss placed 8 pips below the recent swing low.
EURAUD continued to rise and reached a clean 11 pip profit before the histogram weakened.
The trade closed successfully with controlled risk and a steady upward move.
Case Study 2: CADJPY M1
During a period of intraday weakness, the PZ Lopez Trend switched to tomato color on the M1 chart.
Shortly after, the Flat Trend RSI histogram turned red.
A short trade was opened with a 5 pip stop loss above the nearest swing high.
CADJPY dropped quickly and delivered 8 pips in less than five minutes.
The histogram then began to fade, which signaled the exit.
This scalp captured a quick opportunity in a clean short-term trend.
Strategy Tips
- Wait for both indicators to match in direction before entering. This avoids fast reversals on lower time frames.
- Stay out of the market when the histogram becomes flat or keeps switching color, since this often signals a choppy market.
- Keep your risk small and consistent since scalping produces many trades.
- Use partial profits when you notice momentum weakening and allow the rest of the position to continue only if the price stays strong.
- Review pairs that showed the best movement each week and focus on those pairs in the next sessions.
- Use a trailing stop to capture extended moves if the trend becomes unusually strong.
Download Now
Download the “pz-lopeztrend-indicator.ex4” Metatrader 4 indicator
FAQ
What makes the speed detection algorithm unique?
The algorithm measures the velocity of price movements to distinguish between a genuine trend and temporary market noise.
This helps the indicator stay colored correctly during minor retracements.
Is this indicator suitable for M5 and M15 timeframes?
Yes, it is specifically designed to identify trend-following opportunities on lower timeframes that align with higher timeframe trends, maximizing the profit potential of each entry.
How do the dotted lines assist in trading?
The dotted lines act as a price band or envelope. They provide context on volatility and can be used to set logical stop loss levels or identify overextended price conditions.
Summary
The PZ Lopez Trend Indicator is an elite trend-tracking tool that offers unmatched reliability through its noise-filtering technology.
Its non-repainting nature and clear color-coded signals make it an essential asset for disciplined traders.
By focusing on price speed and momentum, it ensures you stay on the right side of the market during major moves.
It is a highly effective choice for those seeking a professional and objective trend-following system.
