The 3 Level ZZ Semafor Indicator is a technical analysis tool used by traders to identify trends and potential reversal points in the market.
The indicator is based on three moving averages that are calculated using the high, low, and closing prices of the previous candles. It is designed to help traders identify the direction of the trend and potential reversal points.
The indicator has three levels that are used to identify trends: the blue dot represents the start of a new trend, the red dot represents the continuation of the trend, and the yellow dot represents a potential reversal of the trend.
Traders can use the indicator to identify potential entry and exit points in the market.
While the 3 Level ZZ Semafor Indicator is easy to use and can be applied to any market and any time frame, it has its limitations. It is based on past prices and may not accurately predict future prices.
Buy Signal Generation With 3 Level ZZ Semafor Indicator
To buy using the 3 Level ZZ Semafor Indicator, wait for a blue dot to appear below the candlestick as the third and final dot in a sequence of yellow, red, and blue, indicating a trend reversal and an upward move.
Confirm with other technical indicators such as RSI or MACD, then place a buy order at the opening of the next candlestick.
Sell Signal Generation With 3 Level ZZ Semafor Indicator
To create a sell condition using the 3 Level ZZ Semafor Indicator, wait for the indicator to generate a red dot above the candlestick, indicating a potential trend reversal and a downward move. The red dot should be the third and final dot in a sequence of yellow, red, and blue.
Place a sell order at the opening of the following candlestick after validating this signal with additional technical indicators like the RSI or MACD.