ZMA: The Superior Moving Average
Are you using Moving Averages that adapt to price?
The ZMA™ is the most adaptable and customizable moving average indicator to date. By using an algorithm that incorporates the concepts of inertia, energy, and responsiveness — the ZMA is infinitely flexible and significantly more effective than other moving averages.
What's the problem with SMAs or EMAs?
Virtually all moving average techniques have just one input setting of length or period, making it impossible for them to adapt to dynamic price movements. By incorporating input settings for “Responsiveness” and “Inertia”, the ZMA overcomes the limitations of other moving averages and can be adapted to ANY symbol, ANY timeframe or chart type, and ANY trading style.
From slow and steady to zero-lag, there are infinite possibilities that can be achieved by experimenting with the ZMA™ input settings. Combined with advanced color-coding options and built-in alerts, the ZMA™ is the only moving average that any trader needs.
The ZMA Indicator Package includes:
ZMA™ Market Analyzer (NinjaTrader Users)
ZMA™ RadarScreen (TradeStation Users)
ZMA™ Market Scanner (MultiCharts Users)
The ZMA Indicator
— Infinite Flexibility and Maximum Adaptability —
The ZMA™ Indicator plots it's moving average value as a line and lets you choose between Price-Based Color-Coding and Slope-Based Color-Coding. It also includes a special feature that you won’t find with other moving averages — deviation bands (i.e. Bollinger Bands) that allow traders to see if the ZMA is bullish or bearish within an uptrend or downtrend. These "ZMA Bands" provide an additional layer of trend filtering and trend analysis (more information below).
The ZMA PaintBar
— Moving Average Color-Coding —
The ZMA™ PaintBar is a visual aid that color-codes the price bars based on the trend conditions of the ZMA. You can choose between “Price-Based Color-Coding” or “Slope-Based Color-Coding:
Green Bars = Price Above ZMA
Red Bars = Price Below ZMA
Green Bars = ZMA Sloping Up (Value Increasing)
Red Bars = ZMA Sloping Down (Value Decreasing)
Responsiveness and Inertia
— The Science Behind the ZMA™ —
The "Responsiveness" setting controls how reactive the ZMA is to fluctuations in price by controlling how high-frequency and low-frequency “noise” is filtered.
• Increasing the Responsiveness setting will decrease the amount of lag, allowing the ZMA to change direction and slope more frequently (increases frequency response).
• Decreasing the Responsiveness setting will make the ZMA less reactive to changes in price, resulting in fewer changes of direction and slope.
*** A very high Responsiveness setting ( > 95+) will cause the ZMA to track price very closely; effectively ‘overriding’ the length or period setting.
The "Inertia" setting controls how "energy" is calculated by amplifying the high frequency and low frequency “noise”.
• By increasing the Inertia setting, smaller price movements will provide more ‘energy’ to the ZMA. The cumulative amount of energy that has accrued over “X” amount of bars affects how the ZMA is calculated and plotted.
• Decreasing the Inertia setting means that smaller price movements are filtered and do not provide much additional energy to the ZMA.
*** A very high Inertia setting (150+) can result in excessive overshoot, in which the ZMA has too much energy and requires more of a price change in order to halt its path of motion.
ZMA Deviation Bands
— Moving Average Bollinger Bands —
The ZMA includes a special feature that you won’t find with other moving averages — ZMA Deviation Bands (i.e. Bollinger Bands). They allow you to see if the ZMA is bullish or bearish within an uptrend or downtrend — providing an additional layer of trend filtering and trend analysis using the following guidelines:
Bullish Trend = ZMA is Green and Above or Near Upper Band
Bearish Trend = ZMA is Red and Below or Near Lower Band
ZMA™ Bands - Length: 13, Deviation: 1
ZMA™ Bands - Length: 13, Deviation: 2
ZMA™ Bands - Length: 20, Deviation: 1
ZMA™ Bands - Length: 20, Deviation: 2
ZMA™ Bands overlayed onto Price
ZMA™ Bands with Price Hidden
Want to Scan for Signals? It's Easy...
Automated Signal Scanning
— Price Crossovers and Trend Conditions —
The ZMA™ Indicator Package also includes a special "Scanner" Indicator designed to scan for signals and trend conditions using the NinjaTrader Market Analyzer, TradeStation RadarScreen, or MultiCharts Market Scanner. And all columns, colors, and text are fully customizable!
As you can see in the screenshots below, using the ZMA with the NinjaTrader Market Analyzer, TradeStation RadarScreen, or MultiCharts Market Scanner allows you to scan for crossovers and reversals across any list of symbols — in just seconds!
NinjaTrader Market Analyzer - ZMA™ Moving Average
TradeStation RadarScreen - ZMA™ Moving Average
MultiCharts Market Scanner - ZMA™ Moving Average
100% Risk-Free Guarantee
Not satisfied with your Indicators? No problem!
You can exchange your Indicator Package for another of equal or lesser value — up to 30 days after purchase!
Superior Customer Support
Have a question about the ZMA™ Indicator Package?
We take great pride in our customer support and are happy to help our fellow traders!
Check out the ZMA™ User Guide to learn more!
(Click the Image Below to View the User Guide)