Day Trading 4.5

Metatrader (MT4/MT5) Indicator

"Trade the one variable nobody can fix or fake: the price."
- Michael Covel
The PZ Day Trading indicator has been specially designed for scalping intraday charts and detects reversals in a Zig-Zag fashion, without repainting or backpainting at all.
  • Amazingly easy to trade
  • Optional continuation patterns can be displayed
  • Chart statistics will help you to optimize your trading
  • It works on every single timeframe without fine tuning
  • The indicator is non-repainting and implements alerts
  • It includes a multi-symbol and multi-timeframe scanner
  • It implements a multi-timeframe dashboard
Based on breakouts and congestion zones of variable lengths, the indicator uses only price action to pick trades and reacts to the market extremely fast. Its winning ratio is around 90%.
  • The potential profit of past signals is displayed
  • The indicator analyzes its own quality and performance
  • Losing signals are not hidden, but highlighted and accounted
  • It implements email/sound/visual alerts
Enhance your trading activity with the easiest and most effective indicator available, just like our customers have already done.

Video

Scalping in a nutshell

The PZ Day Trading is a very complex indicator that relies on variable length breakouts and congestion zones on donchian peaks or bottoms, but it keeps the nitty-gritty stuff for itself. All you need to know to trade it is the following.

  • A blue arrow is a bullish formation and you should buy
  • A red arrow is a bearish formation and you should sell

Sometimes you will bump into losing trades, which are almost always caused by sudden spike bars with long wicks against the trade direction. Because volatility decreases as you go up in timeframes, trading H1 and H4 charts will yield the best results.

How to interpret the stats

The indicator studies the quality of its own signals and plots the relative information on the chart. Every trade is analyzed and the overall historic results displayed at the top-left corner of the chart.

Maximum Favorable Excursion (MFE)
The MFE is the best possible outcome for any given trade.
The average MFE is displayed at the top-left corner of the chart.
Maximum Adverse Excursion (MAE)
The MAE is the worst possible outcome for any given trade.
The average MAE is displayed at the top-left corner of the chart.
Average Absolute Expectancy (AAE)
The AAE is the absolute excursion you can expect for any given trade, obtained by subtracting the MAE from the MFE, which reflects the true quality of the entry strategy. In other words, the entry strategy is measured by the relationship between the average best possible outcome and the average worst possible outcome.

The indicator displays the best possible outcome and the worst possible outcome for every trade using two dotted lines and two price labels, and account every single one of them into the statistics you can find at the top-left corner of the chart. You can use those statistics to optimize the indicator parameters by yourself, for any given instrument and timeframe.

Finally, losing trades are not hidden but highlighted and accounted. Every losing trade is highlighted with a red cross. Looking at them regularly might help you to avoid losing patterns in the future.

Timeframe selection is key

Most brokers lure novice traders into scalping small timeframes, with the implicit argument that more trading frequency translates into more profits. But nothing can be further from the truth. Most traders don't lose their bankroll to the market, but to the broker, and end up asking themselves what went wrong.

If you pick the wrong timeframe without doing the math, you can lose money regardless of how good you are trading! Make sure to read why most intraday traders fail to select a timeframe wisely, before starting your trading activity.

Keep always an eye at the relationship between the Average Absolute Excursion (AAE) and the Cost per trade, to avoid trading timeframes in which the mathematical expectation of your trading is negative.

If you are a novice trader, you should seriously consider trading daily charts or H4 charts, in which the transaction costs are reduced to a minimum in relationship with the potential profits. With just a little patience, you can obtain exceptional returns.

Settings and Input Parameters

When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks. This is what each parameter does.

Indicator Settings
The indicator is constantly looking for certain price patterns of a variable length, starting with a breakout period of Range, and filtering those patters using a Donchian Filter, or in other words, the highest/lowest of the defined number of bars. As you go deeper into smaller timeframes, you want to be increasing the Range parameter.
Dashboard and Analysis
Display or hide the analysis widget and/or the dashboard widget.
Drawing Boxes
The indicator draws boxes around the trigger patterns. Pick your own colors!
Alerts
Enable display/email/push/sound alerts for breakouts.
Developers

In order to build your expert advisor, you can read data from the indicator using the iCustom() function as exemplified below. Read more information about the iCustom() function here.

//---- Read values from the signal buffer
int start()
{
// Read signal for this bar
double value = iCustom(Symbol(), Period(), "PZ_DayTrading_LICENSE", 4, 1);
// Do something
if(value == OP_BUY) { /* Your code for bullish signal */ }
if(value == OP_SELL){ /* Your code for bearish signal */ }
if(value == EMPTY_VALUE) { /* Your code if no signal */}
// Exit
return(0);
}
Frequently Asked Questions
Does this indicator nail tops and bottoms of the market?
Are you completely sure it does not repaint or cheat?
Should I close my trades on opposite signals?
I don't do intraday trading. Can this indicator be useful?
I get a lot of signals when I load the indicator into very small timeframes like M1 and M5, and the spread does not allow me to earn a decent profit from them. What can I do?
How can I avoid losing signals?
Which is the best confirmation?