The PZ Mean Reversion MT4 is an innovative software that brings a quantitative approach to forex trading. It’s a unique indicator that capitalizes on price divergences and returns to the mean in a predictable and measurable manner, outperforming many non-quantitative trading strategies.
Key Features of PZ Mean Reversion MT4
With customizable colors and sizes, the PZ Mean Reversion MT4 provides clear trading signals and implements performance statistics. Additionally, it displays suitable Stop Loss (SL) and Take Profit (TP) levels. This forex trading software also provides email, sound, and visual alerts, ensuring you’ll never miss a trading opportunity.
Understanding the PZ Mean Reversion MT4 Indicator
The PZ Mean Reversion MT4 Indicator is based on a trend-following approach that finds trades with precision by diving into the price action of the current chart. It measures the standard deviation around a fully customizable moving average from a higher timeframe. The trades are closed when the price returns to the mean price band, calculated from a higher timeframe of your choice.
Moreover, the software is designed to avoid high volatility and strong trending markets, focusing instead on predictable scenarios where a return to the mean is feasible within an acceptable volatility to directionality ratio.
Anatomy of the Indicator
The indicator uses a green line to represent the moving average from a higher timeframe (also known as the mean). The dotted area signifies the typical price band around the moving average, with the blue line indicating the breakout price for bullish trades and the red line for bearish ones.
Trades are taken against the mean and closed inside the typical price band, making the PZ Mean Reversion MT4 a valuable tool for forex market analysis.
What to Trade With PZ Mean Reversion MT4
Mean reversion is a common phenomenon in almost all markets, making this software versatile. It can be used for trading Forex Pairs, Stock Indices, Precious Metals, Commodities, Crypto Currencies, and Bonds.
It’s also flexible in terms of timeframes, with recommended settings such as H4 with MN1 Moving Average, H1 with W1 Moving Average, M15 with D1 Moving Average, and M1 with H4 Moving Average.
Frequently Asked Questions
Who is the author of PZ Mean Reversion MT4?
Arturo López Pérez, a private investor, speculator, software engineer, and founder of PZ Trading Solutions, is the author of this software.
Can I test the PZ Mean Reversion MT4 indicator?
At the time of writing, the MT4 tester does not provide multi-timeframe data to indicators, meaning the indicator cannot be tested directly. However, independent testing of this product can be watched on the forexroboteasy.com website, where you can also subscribe to updates on the results of testing this product.
We invite readers to share their experience of using the PZ Mean Reversion MT4. Remember, this is an independent product review, written in a neutral tone, detailing the features and functioning of this quantitative forex trading software.
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