Zero Lag Exponential Moving Average MT4

the zero-lag exponential moving average indicator is most popular indicator in the world. The moving average stands as one of the most commonly utilized technical indicators.

Zero Lag Moving Average Filter

It was crafted to closely track prices without delays, providing a clearer view of trends. While several traditional types exist, ongoing improvements result in newer versions.

The zero-lag exponential moving average (ZLEMA) is a variant of the exponential moving average aimed at mitigating the inherent lag found in typical moving averages.

Zero Lag exponential moving average MT4

Zero-lag exponential moving average indicator for all new traders. Who are new in Forex trading market.

If any one want make profit in forex trading without any loss.

Then try it in demo account for minimum 6 month.

Backtesting Zero-lag Exponential Moving Average Strategies

Before an explanation of ZLEMA Coral Trend Indicator and its calculation, let’s focus on what this platform centers around: quantified backtests.

Let’s examine the S&P 500, a highly traded instrument, using the SPDR S&P 500 Trust ETF (ticker code SPY).

We undertake four distinct backtests:

1. Strategy 1: Buying SPY when its close crosses BELOW the N-day moving average and selling when it closes ABOVE the same average. Evaluated by Compound Annual Growth Rate (CAGR).
2. Strategy 2: Reverse of Strategy 1 buying SPY when its close crosses ABOVE the N-day moving average and selling when it closes BELOW. Also assessed using CAGR.
3. Strategy 3: Selling SPY after the close crosses BELOW the N-day moving average. Performance assessed via average gain per trade in percentage.
4. Strategy 4: Selling SPY after the close crosses ABOVE the N-day moving average. Performance measured using average gain per trade in percentage.

Calculation of Zero-lag Exponential Moving Average:

Lag = [Period – 1] / 2 EMAdata = Data + [ Data – Data (lag days ago)] Zero-lag exponential moving average = EMA[EMAdata, Period]

The objective is to calculate an exponential moving average on de-lagged data, eliminating the cumulative effect of the moving average from prices by subtracting data from ‘lag’ days ago.

Advantages of Zero-lag Exponential Moving Average:

The ZLEMA reduces lag, enabling quicker trend assessment. Since the ZLEMA reacts faster by eliminating lag from its calculation, it’s ideal for short-term trading.

When the ZLEMA trends upward, anticipate a rally; when it trends downward, expect a dip.

It responds faster to price changes compared to most other moving averages, proving beneficial in identifying short-term price swings, especially in day trading or swing trading scenarios.

Download