The ZigZag Fibonacci MT4 forex indicator is a smart variation of the traditional ZigZag MT4 indicator.
Similar to the traditional version, this one also connects bottoms and tops directly on the activity chart but also adds Fibonacci levels to the chart.
In short, why use ZigZag:
With ZigZag, you can see directly on the chart higher tops, higher bottoms or lower tops and lower bottoms.
So you know the trend is either up trending or down trending and you can anticipate the next possible move.
Why is adding Fibonacci to ZigZag smart?
When the market is in an uptrend (spotted by the ZigZag forex indicator), you look to buy the currency pair around the 38.2% Fibonacci retracement level (buy on dips).
Vice versa, when the market is in an downtrend (spotted by the ZigZag forex indicator), you look to sell the currency pair around the 38.2% Fibonacci retracement level (sell on dips).
The CHF/JPY H4 chart below displays the ZigZag Fibonacci forex indicator in action.
Basic Trading Signals
See the description above on how to trade efficiently with the ZigZag Fibonacci indicator.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (ExtDepth, ExtDeviation, ExtBackstep) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Pattern | Fibonacci
Copy and paste the ZigZagFibonacci.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)