The ZigZag MT4 forex indicator connects bottoms and tops directly on the activity chart.
This is a great indicator if you’re into detecting chart patterns.
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.
Use this indicator in conjunction with an oscillator type indicator.
In an uptrend indicated by ZigZag, one would look for oversold oscillator signals and buy oversold oscillator signals.
On the contrary, in an downtrend, one would look for overbought oscillator signals and sell overbought oscillator signals.
The CHF/JPY H4 chart below displays the ZigZag forex indicator in action.
Basic Trading Signals
See the description above on how to trade efficiently with the ZigZag indicator.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (Depth, Deviation, Backstep) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the ZigZag.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)