As the name suggests, the Zero Lag MACD indicator for Metatrader 4 works similarly to the classic MACD indicator but without lag.
The indicator provides short-term trend direction and works great for both scalpers and day traders.
Swing traders might use this indicator to pinpoint trade entries in trending markets.
The trend is considered bullish above the zero level while bearish below.
The indicator works equally well on all currency pairs (majors, minors, and exotic) and shows promising results if used correctly.
Free Download:
Download the “ZeroLag MACD.mq4” MT4 indicator
Indicator Example Chart (EUR/USD M5)
The picture below shows the Zero Lag MACD Forex indicator in action on the trading chart.
Basic Trading Signals
BUY:
- Open a buy trade when the Zero Lag MACD indicator crosses the zero level bottom-up.
- Set stop loss below technical support.
- Exit the buy trade for a predetermined profit target or wait for a sell signal.
SELL:
- Open a sell trade when the Zero Lag MACD indicator crosses the zero level top-down.
- Set stop loss above technical resistance.
- Exit the sell trade for a predetermined profit target or wait for a buy signal.
Download Now
Download the “ZeroLag MACD.mq4” MT4 Indicator
Zero Lag MACD with Trend Magic Indicator Strategy
This strategy pairs the Zero Lag MACD Indicator, known for its quick momentum detection, with the Trend Magic Indicator to confirm the prevailing trend direction.
This combination helps filter trades and improve accuracy on 15-minute and 30-minute charts.
Chart Setup
- Timeframe: 15-minute or 30-minute charts
- Indicators: Zero Lag MACD (default settings), Trend Magic Indicator (default settings)
- Currency Pairs: Major pairs like EUR/USD, GBP/USD, USD/JPY
Entry Rules
- Buy Signal: Enter a long position when the Zero Lag MACD line crosses above the signal line AND the Trend Magic Indicator shows a bullish trend (usually indicated by a green line or bullish signal).
- Sell Signal: Enter a short position when the Zero Lag MACD line crosses below the signal line AND the Trend Magic Indicator shows a bearish trend (usually indicated by a red line or bearish signal).
Exit Rules
- Stop-Loss: Place a stop-loss below the recent swing low for buy trades, or above the recent swing high for sell trades.
- Take-Profit: Use a fixed pip target or exit when either the Zero Lag MACD or Trend Magic Indicator signals a reversal.
Example
On a 30-minute EUR/USD chart, if the Zero Lag MACD crosses above its signal line and the Trend Magic Indicator confirms an uptrend, this signals a strong buy opportunity. Place your stop-loss below the recent swing low and aim for a reasonable take-profit level based on recent resistance.
Additional Strategy Tips
- Trade during active market sessions for better liquidity and price action.
- Use the Trend Magic Indicator’s trend direction to avoid trading against strong trends.
- Backtest the combined strategy to understand its performance in different market conditions.
Combining the fast responsiveness of the Zero Lag MACD with the trend clarity of the Trend Magic Indicator helps traders align with momentum and avoid false signals.
Adjustable Indicator Parameters & Settings
Period, shift, MA method, colors, style
Feel free to experiment with the indicator’s various parameters and settings to develop a setup tailored to your trading style.
Technical Information
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: any
Indicator Type: MACD
How to install the Zero Lag MACD indicator in Metatrader 4?
- Copy and paste the ZeroLag MACD.mq4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
