The Zone Trade MT4 Indicator is a custom indicator for MT4 built on the concepts outlined by Bill Williams. Williams is known for many indicators, including the Awesome oscillator, accelerator oscillator among other indicators. The Zone Trade MT4 Indicator is designed to keep the winning trades running when the markets are moving in a clear trend. The trends are confirmed by factoring in, momentum, acceleration and price confirmation, all of which when put together can signal the trends in prices. This combined information can be a great way to trade the trends or even the pullbacks into the trend.
As the name suggests, Zone Trade MT4 Indicator signals the trends with the uptrend denoted by Green candlesticks, the downtrend denoted by Red candlesticks and flat markets denoted by the Gray candlesticks.
According to the tips outlined by Bill Williams in his book, New Trading Dimensions, he says that the zones are determined by the AO and the AC. When momentum and acceleration are moving in the same direction then prices are known to be either in the Green or Red zone. But when acceleration and momentum are not in sync then prices are known to be trading flat (Gray candlesticks).
The zones help traders to:
- Add to positions or enter into the trend, depending on whether the candlestick is Red or Green
- Offers traders levels to book profits
The Zone Trade MT4 Indicator is a price representation based on the accelerator oscillator and the awesome oscillator.
The first chart below shows the Zone Trade MT4 Indicator applied to charts alongside the accelerator oscillator and the awesome oscillator shown in the sub-window.
Installing the Zone Trade MT4 Indicator
The Zone Trade Indicator works as an overlay indicator on the price chart. To get the Zonetrade candlesticks in place follow the steps outlined.
- Switch to bar chart
- Using F8, select colors for Bar Up and Bar Down as ‘None’
- Add the Zone Trade MT4 Indicator to the chart
There are no indicators settings to be adjusted as the Zone Trade Indicator makes use of the default AO and AC indicator settings.
How to trade with the Zone Trade MT4 Indicator
The Zone Trade MT4 Indicator for MT4 can be used on any time frame. After adding the indicator, traders can make use of traditional trend following strategies such as moving averages or Bollinger bands and trade based on the Zone Trade MT4 Indicator’s candlestick colors.
The chart below shows a comparison between the Zone Trade MT4 Indicator candlesticks (left) and the regular candlestick chart (right). As you can see the price action is the same, only that the Zone Trade MT4 Indicator candlesticks plots Red/Green/Gray colors depending on how the zones lineup.
Due to the similarity with the candlesticks, trading with candlestick patterns could be an effective way. The following example shows how candlestick patterns can help with the Zone Trade candlesticks.
The above chart shows a simple price action based entries. Starting from the left, a long position was taken after an upside breakout from the inside bar. The long position can be safely held as long as the candles remain Green. Then, after the doji and the following Red zone candle, the long position is exited. Now a short position is entered after the bearish close following the doji. The short position is held until we see the first Gray candle which signals flat markets, resulting in exiting the short positions partially.
As illustrated above, the Zone Trade MT4 Indicator can be a great way to scalp the markets in the short term. Traders can apply the Zone Trade MT4 Indicator to their existing trading strategies and use it as a way to enter and exit the markets.
Recommended Time Frames for Zone Trade MT4 Indicator
Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.
Zone Trade MT4 Indicator Download
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