The 3 Level ZZ Semafor forex indicator for Metatrader 4 is a sort of zigzag indicator.
It looks for high and low prices in the trend and then marks them with 1 (short-term), 2 (medium-term) or 3 (long-term).
Number 3 is the most important Semafor level to keep an eye on.
Trade in the direction of the underlying trend.
The default ZZ Semafor period settings (5, 13, 34) can be changed from the indicator’s inputs tab.
Basic Trading Signals
Signals from the 3 Level ZZ Semafor MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when the underlying trend is up and the 3 Level ZZ Semafor indicator paints number 3 below the candlestick (support).
Sell Signal: Open sell trade position when the underlying trend is down and the 3 Level ZZ Semafor indicator paints number 3 above the candlestick (resistance).