The concept of swing highs and swing lows in forex markets has been introduced previously. However, detecting the swing highs and lows can sometimes get confusing.
The zigzag arrow forex indicator detects chart swing highs and chart swing lows at any time.
Working of Zigzag arrow forex indicator mt4:
The zigzag arrow forex 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 chart highs and lows of a swing. However, the zigzag arrow forex indicator mt4 works by plotting an upward arrow below the chart swing low candle and a downward color arrow above the chart swing high candle.
Settings of the forex indicator:
The settings of the swing zigzag indicator are also similar to the swing high-low indicator. In addition, you can change the color and size of arrows in the settings that the indicator plots on the mt4 charts.
Trading Strategy for zigzag arrow forex indicator:
Even though the zigzag pattern is very simple and seems self-explanatory, there are still a few things that you should pay attention to. It would help if you also kept a close eye on your lot size.
Indicator 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. It would help if you took 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.
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Sell strategy:
It would help if you only sold when confirming that the price will 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 forex indicator for mt4 gives you the entry signals in the simplest form, and you can use it alongside other indicators you form a perfect trading strategy.
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