ZP Lopez Trend Indicator

ZP Lopez Trend Indicator

PZ Lopez Trend is an automatic trend-following technical indicator for MT4. Spots dynamic support/resistance, bullish/bearish trends, and potential breakout levels.

The ZP Lopez Trend is a trend-following technical indicator for MT4. It shows current trend conditions, short-term support/resistance levels, and dynamic trendlines, offering a perfect trading solution for forex and stock traders.

We’ve found the indicator adjusting perfectly to all timeframes while testing it on MTF charts. Consequently, it enables you to go for scalping and intraday trading simultaneously. However, we recommend H4 as the best timeframe for the indicator for consistent results.

Technically, indicator helps traders assess possible pullback areas, key breakout levels, and potential buy-sell zones. Moreover, it helps you with day-to-day trend tracking while anticipating long-term price projections. In this guide, you’ll learn how to identify consistently profitable buy/sell signals by using the ZP Lopez Trend indicator in MT4.

How to trade forex and stocks using the ZP Lopez Trend indicator in MT4

The bold line across the price chart works as a dynamic trendline. The indicator turns blue, and the price treats the trendline as support during a bullish market trend. When the price breaks below the support, the indicator level turns red to signal a bearish trend.

The dotted lines around the main trendline show the potential buy/sell zones. For instance, the indicator turns red, and the price plots a bearish breakout at the lower support means it is a sell signal.

As you can see in the above chart, when the price broke above the upper resistance, the trendline turned blue to signal a bullish market trend. So, we can enter long when the price plots a bullish breakout above the recently formed inside bar’s high. Once you activate a buy order, consider placing a stop-loss limit below the lower support.

Whether you open a buy or sell order, try to hold the position until ZP Lopez signals an opposite trend to your entry. Like the above example, we decide to exit the buy order once the trendline turns red, confirming a bearish trend.

While trading based on the ZP Lopez Trend signal, consider opportunities only with a potential of a double return compared to the risk. However, if you apply the indicator on a higher timeframe and hold the entries until the indicator confirms a trend change, you can potentially achieve more than 1:2 risk to reward. Before a manual exit, make sure the trade hits your minimum R:R target.

Conclusion
The Pz Lopez Trend indicator is your daily technical companion for MT4 trading. It is highly sensitive to recent price-action changes and generates real-time trend reversal signals. Besides, Its dynamic trendline shows immediate support/resistance levels, helping you to anticipate potential pullback and price breakout zones. According to our review, ZP Lopez Trend is a good match for trend-following day and intraday traders.