About the Zero Lag TEMA Ultra Trend Indicator
The Zero Lag TEMA Ultra Trend indicator for MT5 is a trend-following tool built on the Triple Exponential Moving Average calculation.
TEMA improves traditional moving averages by reducing delay and reacting faster to changes in price direction.
This indicator integrates the TEMA method with an ultra trend smoothing process to highlight the dominant market direction while filtering out smaller fluctuations.
The goal is to keep the signals responsive without reacting to every minor price movement.
The indicator displays colored clouds beneath the main price area.
A green cloud indicates bullish conditions and shows that the market is trending upward.
An orange cloud signals bearish momentum and highlights periods where sellers control the market.
Because the signals focus on trend direction, traders often use the indicator to stay aligned with strong market moves.
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Ultra trend – zero lag tema.mq5 Indicator (MT5)
Key Features
- Uses Triple Exponential Moving Average calculations to reduce lag.
- Displays colored clouds to show bullish and bearish market phases.
- Ultra trend smoothing filters minor market fluctuations.
- Helps traders follow the dominant trend direction.
- Simple visual signals that are easy to interpret.
- Fully customizable parameters for strategy adjustments.
Indicator Chart
The Zero Lag TEMA Ultra Trend indicator shows colored trend clouds beneath the main price area.
Green clouds represent bullish market phases and highlight potential buy opportunities, while orange clouds indicate bearish conditions where traders may look for sell setups.
Guide to Trade with Zero Lag TEMA Ultra Trend
Buy Rules
- Wait for a green TEMA cloud to appear beneath the price area.
- Confirm that price starts moving in an upward direction.
- Open a buy trade after the bullish cloud forms.
- Keep the position open while the green cloud remains active.
Sell Rules
- Wait for an orange TEMA cloud to appear.
- Confirm that price begins moving lower.
- Open a sell trade once the bearish cloud forms.
- Maintain the trade while the orange cloud remains visible.
Stop Loss
- Place the stop loss a few pips below the most recent support area for long trades.
- Place the stop loss a few pips above the nearest resistance area for short trades.
- Increase the stop distance slightly during high volatility conditions.
Take Profit
- Exit the buy trade when the indicator changes to an orange cloud.
- Exit the sell trade when the cloud switches to green.
- Another approach is to secure profits near a recent swing level.
- Traders may also scale out of positions as the trend develops.
DEMA Ultra TEMA Zero Lag and Hull Levels Day Trading Strategy for MT5
This day trading strategy combines the Zero Lag TEMA Ultra Trend Indicator with the Hull Levels Indicator to build a clean, structured approach for London and US sessions.
The Zero Lag TEMA Ultra Trend indicator displays a colored cloud in a separate window.
A green cloud represents bullish momentum and a potential buy environment, while an orange cloud signals bearish pressure and potential sell conditions.
The Hull Levels indicator provides trend direction on the main chart using adaptive smoothing.
A green line indicates bullish structure, while a deep pink line signals bearish trend conditions.
When both indicators align, price tends to move in clean directional waves suitable for intraday trading.
This strategy is designed for M5 and M15 charts.
It performs best during London and US sessions where volatility is high and price respects intraday structure more clearly.
Buy Entry Rules
- Wait for the Zero Lag TEMA Ultra Trend cloud to turn green, confirming bullish momentum.
- Confirm that the Hull Levels line is green and sloping upward.
- Enter a buy trade after price pulls back to the Hull Levels line and shows rejection.
- Only enter if price remains above the Hull Levels line after the pullback.
- Place the stop loss below the most recent swing low or below the Hull Levels line depending on volatility.
- Take profit when the TEMA cloud turns orange or when price closes below the Hull Levels line.
Sell Entry Rules
- Wait for the Zero Lag TEMA Ultra Trend cloud to turn orange, confirming bearish momentum.
- Confirm that the Hull Levels line is deep pink and sloping downward.
- Enter a sell trade after price retraces toward the Hull Levels line and rejects it.
- Only enter if price remains below the Hull Levels line after the retracement.
- Place the stop loss above the most recent swing high or above the Hull Levels line depending on volatility.
- Take profit when the TEMA cloud turns green or when price closes above the Hull Levels line.
Case Study 1: EURUSD London Session Buy
During the London session on EURUSD M5, price consolidated during the Asian range before breaking upward with strong momentum.
The Zero Lag TEMA Ultra Trend cloud turned green, showing a clear shift toward bullish sentiment.
At the same time, the Hull Levels indicator flipped to green and started trending upward.
After a small retracement into the Hull line, price held support and formed a strong bullish continuation candle.
A buy trade was entered at the close of the candle.
The stop loss was placed just below the Hull Levels line rather than a fixed distance, allowing the trade to adapt to intraday volatility.
Price continued higher in a structured move, respecting the green trend line throughout the session.
The trade was closed exactly when the TEMA cloud switched from green to orange while price closed below the Hull Levels line, confirming that bullish momentum had fully ended.
Case Study 2: GBPJPY US Session Sell
On GBPJPY M15 during the US session, price pushed into resistance after a strong impulsive move upward.
The Zero Lag TEMA Ultra Trend cloud turned orange, signaling bearish pressure entering the market.
Shortly after, the Hull Levels indicator turned deep pink and began sloping downward.
Price retraced slightly into the Hull line but rejected it with a strong bearish candle close below the level.
A sell trade was entered at the close of the rejection candle.
The stop loss was placed above the recent swing high to account for GBPJPY volatility.
Price moved lower in a controlled intraday decline, staying under the Hull Levels line for most of the move.
The sell trade was closed precisely when the TEMA cloud turned green and price closed back above the Hull Levels line, confirming a full bullish reversal and ending the bearish phase.
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Ultra trend – zero lag tema.mq5 Indicator (MT5)
FAQ
What is the advantage of using a TEMA based indicator?
The Triple Exponential Moving Average reacts faster to price changes than traditional moving averages.
This helps traders detect trend shifts earlier while maintaining smoother signals.
Which settings can be adjusted in the indicator?
The indicator allows traders to modify the start period, step value, number of instances, and the ultra trend smoothing period.
These parameters influence how sensitive the indicator reacts to price movements.
Can the indicator be used together with other tools?
Yes. Many traders combine it with support and resistance levels, price action analysis, or momentum indicators to confirm entries and improve trade timing.
Summary
The Zero Lag TEMA Ultra Trend indicator offers a responsive method for identifying the dominant trend direction.
By using the Triple Exponential Moving Average calculation, it reduces lag and reacts quickly to market changes.
The colored cloud signals help traders recognize bullish and bearish phases without complex analysis.
When combined with proper risk management and market analysis, it can help traders follow trends and improve entry timing.
