An Overview of the ZMA : The Superior Moving Average Page 2. ZMA Indicator: Infinite Flexibility and Maximum Adaptability Page 4

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2 An Overview of the ZMA : The Superior Moving Average Page 2 ZMA Indicator: Infinite Flexibility and Maximum Adaptability Page 4 ZMA PaintBar: Moving Average Color-Coding Page 5 Responsiveness and Inertia: The Science behind the ZMA Page 6 The ZMA Bands: Moving Average Bollinger Bands Page 8 Customizing the ZMA Indicators Page 9 - Instructions & Explanations for Various Input Settings Page 10 Automated Scanning Capabilities: ZMA Crossovers and Slope Reversals Page 13 - NinjaTrader Market Analyzer Page 13 - TradeStation RadarScreen Page 15 - MultiCharts Market Scanner Page 16 Superior Customer Support Page 17 Risk Disclosure Statement Page Fibozachi LLC All Rights Reserved. 1

3 The ZMA is a truly unique indicator in that it is the most customizable moving average indicator to date. Its complex algorithm incorporates the concepts of inertia, energy and responsiveness; resulting in a moving average that is infinitely flexible and significantly more effective than other moving averages. Virtually all the different moving average techniques have just one input setting length or period. By going the extra step and incorporating input settings for Responsiveness and Inertia, we at Fibozachi have overcome the limitations of other moving averages and have created a superior moving average that can be adapted to ANY symbol and ANY timeframe or chart type. 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 truly the only moving average that any trader needs Fibozachi LLC All Rights Reserved. 2

4 The ZMA Indicator Package includes the following: Fibozachi LLC All Rights Reserved. 3

5 The ZMA Indicator plots the moving average value as a line and allows users to choose between Price-Based Color-Coding and Slope-Based Color-Coding. It also include a special feature that you won t find with other moving averages, which are deviation bands (i.e. Bollinger Bands) that allow traders to see if the ZMA is bullish or bearish within an uptrend or downtrend. This provides an additional layer of trend filtering and trend analysis using the following guidelines: Fibozachi LLC All Rights Reserved. 4

6 The ZMA PaintBar provides color-coding of the price bars based on the trend conditions of the ZMA. Users can choose between Price-Based Color-Coding or Slope-Based Color-Coding: Fibozachi LLC All Rights Reserved. 5

7 This filter setting controls how high frequency and low frequency noise is filtered. In other words, it determines how reactive the moving average will be to fluctuations in price. Increasing the Responsiveness setting will decrease the amount of lag, which allows the ZMA to change direction and slope more frequently. 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 (greater than 95+) will cause the ZMA to track price very closely; effectively overriding the length or period setting Fibozachi LLC All Rights Reserved. 6

8 This filter controls how high frequency and low frequency noise is amplified by customizing how energy is calculated. 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 a much greater price change in order to halt its path of motion Fibozachi LLC All Rights Reserved. 7

9 The ZMA Indicator includes a special feature that you won t find with other moving averages, which are deviation bands (i.e. Bollinger Bands) that allow traders to see if the ZMA is bullish or bearish within an uptrend or downtrend. This provides an additional layer of trend filtering and trend analysis using the following guidelines: Fibozachi LLC All Rights Reserved. 8

10 Fibozachi LLC All Rights Reserved. 9

11 -- Enabling this option calculates price as the average of the open, high, low and close; essentially, using the mean of each bar as the close rather than the actual close itself. This can help to prevent the ZMA from overreacting to extreme whipsaws in price. -- The amount of bars to include in the calculation of the ZMA. For example, the default setting is 34, which means that the ZMA uses the past 34 bars of price data to determine its value. -- This filter controls how high frequency and low frequency noise is amplified by customizing how energy is calculated. By increasing the Inertia setting, smaller price movements will provide more energy to the ZMA. -- This filter setting controls how high frequency and low frequency noise is filtered. In other words, it determines how reactive the moving average will be to fluctuations in price. Increasing the Responsiveness setting will decrease the amount of lag, which allows the ZMA to change direction / slope more frequently. Decreasing the Responsiveness setting will make the ZMA less reactive to changes in price, resulting in fewer changes of direction / slope Fibozachi LLC All Rights Reserved. 10

12 -- Determines how many bars in the future or past to displace the ZMA. Use a positive number to displace into the past and a negative number to displace into the future. -- Set to True to display deviation Bands based on the value of the ZMA. -- The number of bars to use for the calculation of the ZMA Bands. -- The number of standard deviations to use for the calculation of the ZMA Bands Fibozachi LLC All Rights Reserved. 11

13 -- Enabling this option will plot the ZMA Green or Red dots based on its slope. If the value of the ZMA has increased since the last bar then it is Green. If the value of the ZMA has decreased since the last bar then it is Red. -- Enabling this option will plot the ZMA Green or Red dots based on whether it is above or below price. If the value of the ZMA is below price then it is Green. If the value of the ZMA is above price then it is Red Fibozachi LLC All Rights Reserved. 12

14 The ZMA Indicator Package also includes a special pre-formatted Market Analyzer Indicator and template for all NinjaTrader users. All of the columns, colors and text are completely customizable so that you can personalize it to your own preferences. As you can see from the screenshot below, using the ZMA with the Market Analyzer allows you to quickly scan an entire list of symbols for the most important information in just seconds! You can also sort the data by any column to organize your scan results into easy-to-read lists Fibozachi LLC All Rights Reserved. 13

15 The following is an overview of the various columns and their purpose: ZMA: Bar Count: Price Crossovers: Slope Reversals: Displays the current value of the ZMA. The values in this column refer the number of consecutive bars with the same color or trend status. For example, if the cell is Green and the count is 5, it means that the ZMA has been Bullish for the last 5 consecutive bars. Displays Price Crossovers signals when the ZMA crosses above or below price. Displays Slope Reversal signals when the ZMA reverses its direction. You must adhere to the following values when setting up your own cell conditions: Fibozachi LLC All Rights Reserved. 14

16 The ZMA Indicator Package also includes a special pre-formatted RadarScreen Indicator and template for all TradeStation users. All of the columns, colors and text are completely customizable so that you can personalize it to your own preferences. As you can see from the screenshot below, using the ZMA with the TradeStation RadarScreen allows you to quickly scan an entire list of symbols for the most important information in just seconds! The following is an overview of the various columns and their purpose: ZMA: Displays the current value of the ZMA. Bar Count: The number of consecutive bars with the same color or trend status. For example, if the cell is Green and the count is 5, it means that the ZMA has been Bullish for the last 5 consecutive bars. Price Crossovers: Displays Price Crossovers signals when the ZMA crosses above or below price. Slope Reversals: Displays Slope Reversal signals when the ZMA reverses its direction Fibozachi LLC All Rights Reserved. 15

17 The ZMA Indicator Package also includes a special pre-formatted Market Scanner Indicator and template for all MultiCharts users. All of the columns, colors and text are completely customizable so that you can personalize it to your own preferences. As you can see from the screenshot below, using the ZMA with the MultiCharts Market Scanner allows you to quickly scan an entire list of symbols for the most important information in just seconds! The following is an overview of the various columns and their purpose: ZMA: Displays the current value of the ZMA. Bar Count: The number of consecutive bars with the same color or trend status. For example, if the cell is Green and the count is 5, it means that the ZMA has been Bullish for the last 5 consecutive bars. Price Crossovers: Displays Price Crossovers signals when the ZMA crosses above or below price. Slope Reversals: Displays Slope Reversal signals when the ZMA reverses its direction Fibozachi LLC All Rights Reserved. 16

18 Have a question about the ZMA Indicator Package? Contact us at support@fibozachi.com. We take great pride in our customer support and are happy to help our fellow traders! Fibozachi LLC All Rights Reserved. 17

19 The terms Company, us or we refer to Fibozachi.com, its parent company Fibozachi LLC, and all subsidiaries, affiliates, officers or employees therein. The term you refers to the user or customer of Fibozachi.com. The terms Content and Information refer to the indicators, tools, strategies, techniques, systems, manuals, data, communications and any other associated products or material of the Company. License: You are purchasing a single user license. You may not: copy, modify, publish, retransmit, participate in the transfer or sale of, distribute, perform, display, or create derivative works from, any of the Content or Information in any way. Disclaimer: All Content and Information provided is for educational purposes only. Fibozachi.com and Fibozachi LLC (the Company ) is not an investment advisory service, broker-dealer, commodity trading advisor, legal advisor, tax advisor, or registered investment advisor, and does not purport to tell or suggest which commodities, currencies or securities customers should buy or sell for themselves. The affiliates, employees or officers of the Company may hold positions in the commodities, currencies or securities discussed here. You understand and acknowledge that there is a high degree of risk involved in trading commodities, currencies or securities. You also understand and acknowledge that there is an extremely high degree of risk involved in trading leveraged vehicles such as futures or options, where you can lose more than the initial sum of your investment. The Company, its subsidiaries, affiliates, officers and employees assume no responsibility or liability for your trading or investment results. It should not be assumed that the indicators, tools, strategies, techniques, systems, manuals, data, communications or any other associated products and material of the Company, collectively the Content and Information, presented in its products or services will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns, which may or may not be realized by you. In addition, the articles, blogs, chat, columns, indicators, methods, strategies, systems, techniques, tools, and all other features of Company's website (collectively, the Information ) are provided for educational purposes only and should not be construed as investment advice. Any articles, blogs, chat, columns, comments, discussions, drawings, and examples, including any other items intended to illustrate Information presented on Company's website, are for educational purposes only; such are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding any investment. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment Fibozachi LLC All Rights Reserved. 18

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