Hi, everyone! I’ve just come across a very useful tool in my collection that I really want to share with you.
The 3 Level ZZ Semafor forex indicator for Metatrader 4 is a sort of zigzag indicator. It looks for high and low prices in the trend and then marks them with 1 (short-term), 2 (medium-term) or 3 (long-term). Number 3 is the most important Semafor level to keep an eye on.
This indicator can be used as a standalone, or you can use it together with a trend following indicator such as an exponential moving average with period set at 75 or 100. Trade in the direction of the underlying trend.
The default ZZ Semafor period settings (5, 13, 34) can be changed from the indicator’s inputs tab.
BUY Signal Entry:
Open buy trade position when the underlying trend is up and the 3 Level ZZ Semafor indicator paints number 3 below the candlestick (support).
SELL Signal Entry:
Open sell trade position when the underlying trend is down and the 3 Level ZZ Semafor indicator paints number 3 above the candlestick (resistance).