Zero Lag is a modified EMA.
Calculation formula:
EMA ZL = α * (EMA + Gain * (Close - ZL [1])) + (1 - α) * ZL [1]
The formula is similar to EMA with an addition of a new value Gain * (Close – ZL [1])
Gain is the value selected from the interval [-GainLimit, GainLimit] to minimize the error for the current data sample (Close – ZL) → min
The indicator has three input parameters:
- Period – calculation period;
- Gain limit – the Gain parameter;
- Applied price – price used for calculations.
Similar MetaTrader Trading Tools:
