Zigzag arrow indicator mt4 introduction:
The concept of the formation of swing highs and swing lows in forex markets is not old. The only thing is it can sometimes get confusing to detect the swing highs and lows correctly.
The zigzag arrow indicator is used to detect swing highs and swing lows at any time.
Working of Zigzag arrow indicator mt4:
The zigzag arrow indicator works on the same principle as the swing high low indicator. The only difference is that the swing high low indicator draws a line connecting the highs and lows of a swing. However, the zigzag arrow indicator mt4 works by plotting an upward arrow below the swing low candle and a downward arrow above the swing high candle.
Settings of the indicator:
Settings of swing zigzag indicator are also similar to swing high low indicator. You can change the color and size of arrows in the settings that indicator plots on the charts.
Trading Strategy for zigzag arrow indicator:
Even though the zigzag pattern is simple and seems self-explanatory, there are still things that you should pay attention to. You should also keep a close eye on your lot size.
Buying strategy:
It’s evident from the above explanation that the buy entry should be at a swing low. But before taking the trade, you should see the overall trend in the market at a higher timeframe. So if the general trend in the market is bullish and there is the formation of continuous higher highs and higher lows. You should take a long position. Your stop loss should be a few pips below the entry, and take profit should be as soon as you see the downward arrow and swing high.
Sell strategy:
You should only sell when you are confirming that the price is going to go down. One good way to ensure that is by looking at the overall higher timeframe trend and the general direction is going bearish. You can try taking a short position
Conclusion:
The zigzag arrow indicator for mt4 gives you the signals in the simplest form, and you can use it alongside other indicators you form a very good trading strategy.
Also, don’t forget to check out this amazing indicator which you can use in combination with Zig Zag Arrow indicator.
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