PZ Lopez Trend Indicator is a highly effective forex indicator that is able to identify the market trend and define the dynamic support level of the current momentum at the same time. It offers great flexibility for the traders since it suits both scalping and intraday tradings. Therefore, you can apply it for any timeframe chart you want to trade.
PZ Lopez Trend Indicator uses a very simple technique thus very much suitable for the newbie traders. Besides, it can be applied to trade all kinds of forex currency pairs available in the financial markets.
PZ Lopez Trend Indicator Overview
After the installation is done, the indicator will appear at your MT4 chart like the following image:
PZ Lopez Trend Indicator Explanation
PZ Lopez Trend Indicator signals market trends in the same manner as Moving Averages. In fact, it reacts quicker than Exponential Moving Averages. When the market is in a bullish trend, the price will mostly close above the indicator level and it turns itself into blue.
On the contrary, for bearish trends, the indicator turns red and price keeps closing below the indicator level. You can also use its levels as dynamic support of you any open market positions. Since it is a trend following indicator, we recommend you not to use it against the trends.
PZ Lopez: Buy Conditions
- Price remains above the indicator level
- The indicator turns blue
- Buy triggers when the above conditions are met
- Set stop loss below the indicator level
- Exit long/take profit whenever the indicator turns into red color
PZ Lopez: Sell Conditions
- Price remains below the indicator level
- The indicator turns red
- Sell triggers when the above conditions are met
- Set stop loss above the indicator level
- Exit short/take profit whenever the indicator turns into blue color