NonLag Indicator MT4 | MT5

The NonLag is a trend-following indicator that provides more accurate trade signals than traditional moving averages by minimizing lag. It is displayed as a line on the MetaTrader chart, with its color changing based on the market conditions:

- A green line signals bullish dominance.

- A red line signals bearish dominance.

Furthermore, in terms of calculation, the indicator uses a combination of price data smoothing techniques, such as weighted averages, to provide a clearer picture of price action, which helps traders identify the beginning of new trends earlier.

Bullish and Bearish crossovers:

- When the NonLag Indicator line falls below the previous bar turning green, it signals a potential buy opportunity.

- When the indicator's line crosses above the previous candle turning red, it signals a potential short opportunity.

To confirm trend strength before entering trades, this indicator should be used in conjunction with other indicators like the RSI or MACD. 

1* In the first trading example, when the NonLag indicator is applied on the MetaTrader 4 chart, towards the end of the downward trend, the red line crosses below the last price candle, suggesting a potential bullish crossover. Once the line turns green, it signals a strong buying opportunity for the trader. 

In this situation, traders should exit their short positions, based on the previous bearish trend, and enter long on the EURUSD pair.

2* In the second trading example, when the NonLag indicator is downloaded on the MetaTrader 5 chart, towards the end of the upward trend, the green line falls below the previous price candle, anticipating a potential bearish crossover. Once the line turns red, it signals a strong selling opportunity for the trader.

In this case, traders should exit their long trade positions, based on the previous bullish trend, and enter short on the GBPJPY pair.