Zero Lag MACD attempts to remove lag in the MACD is a VTL. It does this by using a Zero Lag Moving Average instead of traditional moving average. The Zero Lag MACD places greater emphasis on recent prices, and generate earlier signals than the conventional MACD.
Zero lag MACD can be used like the traditional MACD, but Zero Lag MACD signal earlier trend changes.
One way of using Zerolag MACD is to use cross over with the signal line. When Zero Lag MACD is below zero and cosees above signal line, a long trade can be initiated. See image. For a short trade Zerolag Macd is above zero and a downward cross over happens with signal line. An example is marked in chart.
Zerolag MACD can also be used as an oscillator. Divergences are an excellent way of using MACD as an oscillator. Price and Zerolag MACD divergence is also marked in chart.
In fact Zerolag MACD can be used both as trend following indicator and as an oscillator.