This video teaches about a trading indicator called ZLSMA for gold/XAUUSD pairs. It includes backtesting, setting up the indicator, and entry/exit rules.

The Best Trading View Indicator for Gold/XAUSD Pairs: Zero Lag SMA (ZLSMA)

Introduction: Trader Edge App for Backtesting

Before we dive into the topic of the best trading view indicator for gold or XAUSD pairs, let’s talk about a useful app for backtesting called Trader Edge. This app offers a more efficient way to record and analyze your trades, giving you important metrics such as profit factor, average winning and losing trades, and an edge score. Click the link in the description below to get a 7-day free trial from Trader Edge.

How to Use trading indicators in Gold/XAUSD Trading

trading indicators are essential tools for technical analysis in the trading world. In this section, we will teach you how to use trading indicators in gold or XAUSD trading. The focus of this video will be on the Zero Lag SMA (ZLSMA) indicator but we will also use the Exponential Moving Average (EMA) indicator with a period of 200 as a trend filter.

How to Place the ZLSMA Indicator on Your Trading Chart

To place the ZLSMA indicator on your trading chart, first open your gold trading chart and change the time frame to one hour. This trading indicator works well on the one-hour time frame. Click the indicator menu at the top and search for ZLSMA. Several ZLSMA indicator options will appear, choose the one created by Varifid. Then click the settings menu on the ZLSMA indicator and choose an initiator time frame with a period of four hours. This is because the gold or XAUSD pair has stable market conditions on the four-hour and one-day time frames. By taking data on a four-hour time frame but trading on a one-hour time frame, you will have the opportunity to open more trading positions with a higher win rate.

How to Place the EMA Indicator with a Period of 200 on Your Trading Chart

To place the EMA indicator with a period of 200 on your trading chart, click the indicator menu at the top and search for ‘moving average exponential’. Choose the EMA option and change the period from 9 to 200 in the inputs menu. Then change the line thickness of the 200 EMA indicator. Click OK and your trading chart is ready to use for analysis.

How to Enter and Exit Using the ZLSMA Indicator

To enter using the ZLSMA indicator, make a buy entry when the green candlestick crosses from the bottom up through the ZLSMA line and the price or the ZLSMA candlestick and indicator is above the 200 period moving average line. Make a sell entry when the red candlestick crosses from top to bottom through the ZLSMA line and the price or the ZLSMA candlestick and indicator is below the 200 period moving average line.

For a buy entry, the price or candlestick must first be above the 200 EMA line, indicating an uptrend. The ZLSMA line must also be above the 200 EMA line, the green candlestick must cross the ZLSMA line from the bottom up, and the candlestick must close above the ZLSMA line. Place a stop loss at the recent swing low and a take profit with a value 1.5 times greater than the stop loss value.

For a sell entry, the price or candlestick must first be below the 200 EMA line, indicating a downtrend. The ZLSMA line must also be below the 200 EMA line, the red candlestick must cross the ZLSMA line from top to bottom, and the candlestick must close below the ZLSMA line. Place a stop loss at the recent swing high and a take profit with a value 1.5 times greater than the stop loss value.

Conclusion: Using ZLSMA Indicator for Gold/XAUSD Trading

Using the ZLSMA indicator is a simple and effective way to improve your gold/XAUSD trading strategy. By following the entry and exit rules based on the indicator’s signals, you can increase your chances of making profitable trades. Remember to use the EMA indicator with a period of 200 as a trend filter to maximize your profit potential.

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