Zero Lag Exponential Moving Average (ZLEMA)
period = 14 (2–200) Overview
The Zero Lag Exponential Moving Average (ZLEMA) is a technical indicator that enhances the traditional EMA by reducing the time delay inherent in all trend-following indicators. By using a de-lagging technique that incorporates data from both the current period and a calculated lag period, ZLEMA provides a more responsive moving average that closely tracks price movements while maintaining the smoothing benefits of traditional EMAs.
The ZLEMA calculation involves determining a lag period based on the chosen timeframe, then creating a "de-lagged" data series by adding the difference between current prices and past prices to the current data. This modified data is then processed through a standard EMA calculation, resulting in a moving average that reacts more quickly to price changes.
Interpretation & Trading Signals
Price Crossover Signals:
- Bullish: Price crosses above ZLEMA, suggesting upward momentum
- Bearish: Price crosses below ZLEMA, indicating downward momentum
Moving Average Crossovers:
- Bullish: Fast ZLEMA crosses above slow ZLEMA or traditional MA
- Bearish: Fast ZLEMA crosses below slow ZLEMA or traditional MA
Dynamic Support/Resistance:
- Support: In uptrends, ZLEMA often acts as dynamic support
- Resistance: In downtrends, ZLEMA frequently serves as dynamic resistance
- Trend Confirmation: Price consistently above ZLEMA confirms uptrend, below confirms downtrend
Example Usage
Code examples will be available once the Rust implementation is complete.
Performance Analysis
Related Indicators
Pivot Moving Average
Technical analysis indicator
Variable Index Dynamic Average
Technical analysis indicator
Variable Length Moving Average
Technical analysis indicator
Arnaud Legoux Moving Average
Moving average indicator
Centered Weighted Moving Average
Moving average indicator
Double Exponential Moving Average
Moving average indicator