The ZigZag Alert Signal forex indicator for Metatrader 4 is based on the well-known ZigZag technical indicator.
In order to make it easier for traders to follow its buy and sell signals, this version sends out alerts when there’s a new buy or sell trade opportunity.
Moreover, the indicator draws buy and sell arrows on the chart.
- A blue arrow represents a buy trade opportunity.
- A red arrow represents a sell trade opportunity.
It’s recommended to confirm signals with additional technical indicators or with price action techniques.
Furthermore, the ZigZag Alert Signal indicator displays the following Metatrader 4 account info on the main trading chart (can be turned ON and OFF).
- Broker name
- Account number
- Trade Mode (demo or real)
- Leverage
- Balance
- Equity
Free Download
Download the “ZigZagSignal.mq4” MT4 indicator
Indicator Chart (USD/JPY M1)
The USD/JPY 1-minute chart below displays the ZigZag Alert Signal Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the ZigZag Alert Signal MT4 indicator are easy to interpret and go as follows:
Buy Signal: Open buy trade position when the ZigZag Alert Signal MT4 indicator suggests to “open BUY order”. Place a protective stop 1-3 pips below support.
Sell Signal: Open sell trade position when the ZigZag Alert Signal MT4 indicator suggests to “open SELL order”. Place a protective stop 1-3 pips above resistance.
Trade Exit: Use your own method of trade exit.
MT4 ZigZag Alert Signal + Zero-Lag MA Forex Strategy
This strategy combines the ZigZag Alert Signal MT4 Forex Indicator with the Zero-Lag Moving Average (MA) MT4 Forex Indicator.
The ZigZag Alert Signal gives clear arrow signals: blue arrows for buy and red arrows for sell.
The Zero-Lag MA provides a smoother and more responsive trend filter: when the price is above the MA, the trend is bullish; when below, bearish.
By combining them, the strategy filters entries to those aligned with the overall trend and timed by reversal/continuation arrows.
This setup can work on M5 and M15 charts and suits traders who prefer simple yet effective signals with defined entry and exit rules.
Buy Entry Rules
- Price must be above the Zero-Lag MA, indicating a bullish trend.
- A blue arrow must appear from the ZigZag Alert Signal.
- Enter long at the open of the next candle after the blue arrow appears while price remains above the MA.
- Place a stop loss a few pips below the most recent swing low or below a recent support area.
- Set take profit at a 1:2 risk-to-reward ratio, or exit if price closes below the MA or if a red arrow appears.
Sell Entry Rules
- Price must be below the Zero-Lag MA, indicating a bearish trend.
- A red arrow must appear from the ZigZag Alert Signal.
- Enter short at the open of the next candle after the red arrow appears while the price remains below the MA.
- Place a stop loss a few pips above the most recent swing high or above a recent resistance area.
- Set take profit at a 1:2 risk-to-reward ratio, or exit if price closes above the MA or if a blue arrow appears.
Advantages
- Trend filter from Zero-Lag MA helps avoid trades against the overall market direction.
- Arrows from ZigZag Alert Signal give timely entries, which often occur near short-term reversals or momentum changes.
- Simplified rules make it easy to follow even for beginners.
- Well-defined stop losses and take profits improve risk management and trade consistency.
- Works across multiple currency pairs when markets are trending.
Drawbacks
- In sideways or choppy markets, the arrows may trigger frequently while the price flips around the MA, causing many false signals.
- Using fixed risk-to-reward may limit profits in strong trends or cause premature exits.
- On lower timeframes (M5), whipsaw can hit stop loss quickly if the price spikes without clear trend confirmation.
- The strategy may miss bigger moves because it targets moderate gains with conservative exits.
Case Study 1
On EURUSD M5 during the London session, the price was trading above the Zero-Lag MA, indicating bullish bias.
A blue arrow appeared on the ZigZag Alert Signal after a brief pullback.
The trader entered long at the next candle with a stop loss 8 pips below the recent swing low.
Price then climbed within 15 minutes and hit a 16‑pip take profit (risk of 8 pips, reward 16 pips).
The MA remained below the price, and no red arrow appeared during the move.
The setup followed the trend direction and produced a clean scalp.
Case Study 2
On USDJPY M15 during the New York session, the price was clearly below the Zero-Lag MA, indicating a bearish trend.
A red arrow formed signaling a sell.
The trader entered short at the next candle, placing a stop loss 12 pips above the recent swing high.
Over the next 30 minutes price fell steadily and reached a 24‑pip take profit (with 1:2 risk-reward).
The MA stayed above the price, and no blue arrow appeared during the trade.
The bearish momentum aligned with the trend filter and gave a strong intraday move.
Strategy Tips
- Trade major and liquid currency pairs like EURUSD, USDJPY, GBPUSD, or EURJPY for tighter spreads and more reliable signals.
- Focus on active market hours such as the London session or the London and New York overlap to take advantage of stronger price movements.
- Avoid trading when markets are flat or consolidating since signals during these periods often lead to whipsaws.
- Maintain strict risk management by using small position sizes and limiting the risk to a small percentage of your account per trade.
- Skip trades if the price is too close to the MA or near strong support or resistance areas that could distort normal movement.
- Backtest the strategy across different currency pairs and sessions to determine which setups provide the best win rates.
Download Now
Download the “ZigZagSignal.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (depth, deviation, backstep, display alerts, email alert, display trader info), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: signals
