ZoneTrade Indicator Settings and Signals

It’s required to carry out a comprehensive assets analysis for successful trading in financial markets. Various tools that can determine the trend’s direction, strength and acceleration are often used for this.

Complex approach gives clear signals, since the trend definition without other parameters is almost useless.

For example, many of you have met the situation the price doesn’t change for several days and even weeks while bringing losses on the swap when buying a certain asset on a well-formed upward trend.

This situation is pursued by most traders since many other factors except for the forex market direction at the time of the signal were not taken into account.

ZoneTrade indicator is a professional technical analysis tool that directly displays rising or falling trend zones on the chart, as well as those gray areas that are commonly called flat.

The indicator can be used on any trading asset and the time frame choice depends on the trader’s preferences.

ZoneTrade indicator perfectly copes with the function of the main filter against false signals and can also perform signaling function based on almost any trading tactics oriented to the trend.

ZoneTrade indicator setting

ZoneTrade indicator has been developed by programmers for trading in the MT4 trading platform, that’s why you will have to download it at the end of the article on this website and then to install it into the trading platform to apply the indicator.

You will need to access the system folders MT4 to install the indicator in the trading platform. So, open your trading terminal and enter the file menu.

Find the line “Data Catalog” in the menu and start it. You will see the system folders number, among which you will need to find indicators and transfer ZoneTrade to it. After restarting the trading terminal, the ZoneTrade indicator appears in the custom forex indicators list.

Change the chart type from the candlestick to linear and move ZoneTrade onto it to start trading. You will receive this chart:

The indicator building principle. Trading signals

ZoneTrade indicator was based on the Bill Williams zone trade principle based on two of its AC and AO indicators. AO indicator displays the market strength and direction (trend type) and the AC indicator displays the market acceleration.

Thus, Bill Williams based on two histograms distinguished the green zone when the bars on both indicators were green, the red zone, when the bars on both oscillators were painted in red and gray when the color of the bars did not match.

ZoneTrade indicator was built based on this theory and the correspondence between the colors of AC and AO zones can be seen in the image below:

Due to the fact ZoneTrade consists of two indicators of Bill Williams, it can be used both alone and in combination with other instruments of forex technical analysis. So, let’s look at the signals when applying the indicator without additional tools.

Signal for long:

1) The ZoneTrade indicator displays a candle by green color.

2) The closing price of the second candle is higher than the closing price of the previous one and is colored green.

It’s required to enter the position only after closing the candle since the indicator is redrawn. Exit the position occurs when the indicator color changes from green to gray or yellow. Example:

Signal for short:

1) ZoneTrade indicator displays the candle by red color.

2) The closing price of the second candle is lower than the closing price of the previous one and is painted in red.

It’s required to enter the position only after closing the candle. See the example below to get more details:

ZoneTrade can be used as a main signal filter the way the signal of a forex strategy corresponds to both the trend direction and acceleration which is required to quickly achieve a profit.

In conclusion, I would like to note that the ZoneTrade indicator is an excellent adaptation of the Bill Williams zone approach, which greatly simplifies trade while using the current method.