Line of Zero Indicator

Line of Zero Indicator

The Line of Zero indicator for MetaTrader 4 is a simple forex technical tool that tracks the volatility condition in the market.

The Line of Zero indicator for MetaTrader 4 is a simple forex trading tool that tracks the volatility conditions in the market. It draws a horizontal green line that runs across the chart, which gauges the increase/decrease in the volatility of the market.

This indicator isn’t a technical tool for trend analysis but one that strictly detects price volatility. In other words, it wasn’t conditioned to read the price chart and deliver buy/sell entry signals. However, it may come in handy to help you determine the ideal time to make a trading decision based on the market’s volatility (e.g. during news hours).

So, the Line of Zero indicator defines the level of volatility by the distance between the green horizontal and the price. Thus, high market volatility is depicted by how far the indicator’s line is to the price, while low market volatility is depicted by how close the line is to the price.

How to Use the Line of Zero Indicator

The above image depicts the action of the indicator on the GBPJPY currency pair in the M15 timeframe. It shows a wide gap between the green line and the price, which simply implies that there is high volatility in the current GBPJPY pair.

The above image depicts the action of the indicator on the EURUSD currency pair in the H4 timeframe. It shows no gap between the indicator’s line and the price, which implies that there is little volatility in the current EURUSD pair.

Conclusion
The Line of Zero indicator for MT4 is a non-repainting tool that would help you to keep a tab on the continual fluctuations in market volatility. Finally, it is free to download.