If you are a forex swing trader, the best results can be achieved using the ZIG-ZAG MT4 indicator. The ZIGZAG indicator provides the trend direction and identifies the best support and resistance levels. This Metatrader indicator reduces the noise by ignoring small price fluctuations. Thus enabling the trader to focus on a much smoother trend direction.
The Swing ZZ Zigzag Indicator also provides the trader with a Top-Down forex trading approach. The trends in the higher timeframe charts are more clearly identifiable in, the lower time frame charts. As a result, the lower time frame charts provide much better entry and exit points in the higher timeframe direction. The support and resistance levels in the higher time frames are further identified by traders precisely using the lower timeframe charts enabling precise entry and exit.
How to trade successfully using the Swing ZZ Zig Zag Metatrader Indicator?
The above GBPUSD H4 chart shows the entry and exit points using the indicator’s swing points. The BUY and SELL points can be easily identified by this mt4 indicator. The zig-zag displays the swing highs and lows with Red and Blue color dots. In a downtrend, if the price breaks below the previous swing low, then forex traders can place a SELL order. Oppositely if the prices break above a previous swing high, it signals a BUY order.
Both new and experienced forex traders find it very usefull as the indicator is easy to apply and interpret. Because of its ability to identify trends, many forex Expert Advisors use the Zigzag.
How to BUY and SELL higher time frame trends using the Swing ZZ Zig Zag MT4 Indicator?
The above image shows the GBPUSD H4 forex chart from 12th November 2020 to 18th November 2020. And a GBPUSD M30 chart from 12th November 2020 to 17TH November 2020. The GBP USD was trending higher from a swing low in the H4 chart. The M30 chart beside it displays the same price movement.
The Zigzag in the M30 chart provides the trader with much better entry points by displaying the detailed trend. As a result, the support and resistance level in the lower time frame chart helps the trader ride the trend. And also to exit early once the trend starts to wane.
Setting
This indicator has only one parameter, which adjusts the level of the trend. Generally a higher minBar value displays only larger swing highs and lows, ignoring smaller fluctuations.
minBars : 2
Conclusion:
The Swing ZZ Zigzag indicator is very effective in trading the trends. However, they may not be appropriate in a ranging forex market. The trader has to identify the optimum minBars value in the indicator settings for every trading instrument. Because every forex pair has a different trending nature. Due to this indicator’s ability to provide trend direction with support and resistance along with precise entry and exit points. Swing_ZZ zig zag is a very successful MetaTrader indicator.
