The Zerolag HATEMA and ZerolagTEMA were presented by Sylvain Vervoort in “THE QUEST FOR RELIABLE CROSSOVERS” Technical Analysis of Stocks & Commodities, May 2008. The Zerolag HATEMA is based on a TEMA that uses Heikin-Ashi candles as input series.
Indicator Description
The Zerolag HATEMA: In a second step Sylvain Vervoort applied zero-lag techniques to the HATEMA to compensate for its lag. For further details, please read the article by Sylvain Vervoort. This indicator does not depend on the selected input series, as it uses open, high, low and close of each candle. As a consequence this indicator may not be used with any other input series than price.
Other Library Indicators
A higher timeframe Zerolag HATEMA may be used in combination with other tools for technical analysis, such as channel indicators, momentum oscillators, support / resistance levels and volume analysis. For channel indicators, you may review the Commodity Channel Index, Donchican Channel or the Squeeze Channel. A Donchian Channel Strategy was reviewed in our Indicator Spotlight, as was the Squeeze Momentum setup. Furthermore, the Indicator Spotlight looked at how the TDI indicator utilizes the RSI in three timeframes.
Re. support / resistance, you may consider using Fibonacci lines, for example the Prior Day Fibs, standard Daily Pivots, Camarillo Pivots Daily or the Rolling Daily Pivots. Our Indicator Spotlight newsletter previously looked at a trading strategy based on Fibonacci Retracement levels.
In terms of volume analysis, you may review Better Volume or Relative Volume as discussed here. For instruments that lack reliable volume information (FX/Crypto currencies), consider the Relative Ranges indicator, more information available in this post.
Other that the Zerolag HATEMA, our moving average category included the ALMA, DWMA, Exponential Hull Moving Average, Moving Average Wave or the MA Cross, Tillson T3 and the Zerolag HATEMA. Our Indicator Spotlight also discussed the Trigger Lines Cross vs. Thrust Trend Definition.
Additionally, you may want to review our Trend Analysis and Trend Filters, such as the ADX, ADXR ADXVMA Plus, Directional Movement Index (DMI), Efficiency Ratio, Butterworth Filter, Gaussian Filter, Laguerre Filter, Rainbow Filter, Supersmoother Filter and the Supertrend indicator.
Finally, you may consider managing positions by using the Chandelier Stop. Other trailing stop indicators are available from the Trailing Stops category.
The Zerolag HATEMA is available for NinjaTrader 8.
