PZ Lopez Trend MT5
Are you a trend trader tired of noise, spikes and whipsaws? The Pz Lopez Trend indicator tracks the market trend with an unmatched reliability, by ignoring sudden fluctuations and market noise around the mean price. It allows you to be steady when everyone else is shaky.
- Amazingly easy to trade
- Find oversold/overbought situations
- Enjoy noise-free trading at all time
- The indicator needs no optimization at all
- It implements email/sound/push alerts
- The indicator is non-repainting
Anatomy of the Indicator
The Pz Lopez Trend indicator displays a colored line surrounded by a price band. The colored line is the mean price of the security, and the price band represents the overbought/oversold levels. If the mean price is blue you should be looking for long trades when the market is not overbought, and if the mean price is red, you should be looking for short trades when the market is not oversold.
There is a myriad of strategies which can be developed using the Pz Lopez Trend indicator, being the simplest of them a reversal system which trades only when the close price hits the mean price or the bands, thus avoiding trading when a sudden spike or correction takes place and the market is panicking.
The rules can be summed up as follows. Buy during an uptrend when the price hits the mean price or oversold band, and sell during a downtrend when the price hits the mean price or the overbought band. This simple strategy will keep your losses to a minimum when the market is flat or jumpy.
However, you can create your own trading strategies, as long as
trades are taken inside the bands or close to the mean price. Almost any
indicator can be useful in conjunction with the Pz Lopez Trend indicator without altering the value it provides: isolation from market noise. The price always returns back to the mean price.
Additionally you can fine-tune the entry strategy using other discretionary price action ingredients, such as false breakouts, pin bars, fractals, candlestick patterns or breakouts. Just make sure not to buy above the overbought level, and not to sell below the oversold level.
The Pz Lopez Trend indicator can work very well with the following tools.
Some Nitty-Gritty Details
- The indicator has been named after me ;)
- The indicator is evaluated every bar, not every tick
- The indicator has only one drop-down parameter w/ four possible values
- It implements visual, sound, email and push alerts
Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.