ZZ YZ MDAC Elder Indicator

ZZ YZ MDAC Elder Indicator

The ZZ YZ MDAC Elder Indicator for MT4 detects the end of a pullback. Best forex indicator!

The ZZ YZ MDAC Elder Indicator for MetaTrader 4 (MT4) is a trend analysis indicator with algorithms that detect the end of a bullish or bearish retracement. It works well in established market trends only.

The indicator is built with histogram bars to detect the potential endpoint of a retracement and signals the continuation of the original trend. The histogram bars also help to interpret the direction of the market trend – bars above or below the zero line depict bullish/bearish sentiment, respectively.

How to Trade with the ZZ YZ MDAC Elder Indicator

The above image shows the ZZ-YX MDAC Elder indicator in action on the EUR/USD pair.

The histogram bars of the indicator come in three distinct colors – red, green, and blue. The red bar shows the market trend is bullish, while the green bar posits a bullish trend. On the other hand, the blue bar signals an imminent change in the direction of the trend.

Therefore, when the price retraces to the upside in an established downtrend, for example, wait for the blue histogram bar (which depicts the potential end of the retracement) and then open a sell position when the red bar is displayed. Note that the green and red bar has to be above/below the zero level to validate the trend direction.

In addition, using a green and red candlestick for buy/sell trade execution would increase the probability of winning trades. So, when the indicator identifies a sell signal, for instance, wait for the price action to print a bearish candlestick before opening a sell position.

Conclusion
The ZZ YZ MDAC Elder Indicator for MT4 is a forex tool that spots the potential end of a pullback (retracement) and the beginning of a new move. It is also free to download.