Successful traders try to identify a trend as early as possible and ride till the end. Channel ZZ Indicator for MT4 is a perfect combination of channel and ZigZag trading technique. The combination enables the trader to identify a trend and ride it while remarkably reducing the market noise and identifying the best entry and exit points. It also assists the trader to manage the stops and ride the trend till the end.
The indicator draws a channel based on the price movements and a zigzag based on the channel. Many forex technical trading systems use the values of zigzag to plot others. However, this metatrader indicator draws zigzag based on another one, the channel. The combination of channel and zigzag indicator provides the MT4 trader only with strong support and resistance levels.
Channel ZZ Indicator for Top Down trading approach
The zigzag indicator provides both new forex traders and experienced traders with a top-down view of the trend from a higher time frame to the lower one.
EURUSD H4 chart swing area
In the above picture B, the highlighted swing area in the H4 chart is the same area highlighted in Picture C below.
The same chart area of B shown in H1 chart
The top-down view of trends provides valuable insight into the smaller trends and underlying price movements to manage every trade successfully.
Zigzag reduces the noise
Smoother settings applied
The above picture shows the same chart of EURUSD H1, but with different settings (A and B). The first chart has a much smoother indicator settings applied to reduce market noise, mostly compared to the second chart. This helps a forex trader to stay in the higher trend direction while avoiding distraction by the smaller fluctuations.
Trading the Channel_ZZ Indicator for MT4
Trading the Zigzag channel indicator
The above picture illustrates how the zig zag provides the forex trend trader with exact entry and exit points to Buy and Sell in a H1 chart while keeping the trader within the trend direction.
The swing trader trading with the H4 charts uses the zig_zag points of the H1 time frame to move the stop loss for a risk-free trade and lock in the profits as the trade progresses.
The indicator provides additional information about the length of the previously completed section of zigzag in pips and the ratio between a section’s size and its previous one. This information can gauge any section of zigzag’s trend strength with the previous one.
This indicator provides the trader with all necessary technical details to trade the markets successfully.
Setting
Smooth Period: A higher value provides a much smoother channel.
Channel Width: Increases the width of the channel; a wider channel reduces more noise.
Font size: Changes the font size of the information of swing distance in pips.
Font name: Changes the font style.
Draw channel: Displays the channel.
