Kwan Zig Zag is a free mt4 (Metatrader 4) indicator that provides rapid trading signals for scalping purposes.
The indicator appears in a separate MT4 chart window as a bi-colored buy & sell signal line.
The Kwan Zig Zag indicator can be used in multiple ways.
Buy & Sell Trade Example
- Open a buy trade when the signal line turns blue and the overall trend is rising.
- Open a sell trade when the signal line turns red and the overall trend is declining.
- Reverse the position whenever an opposite signal occurs on the chart.
The Kwan Zig Zag indicator can be used for both trade entry and exit or mixed together with your own favorite trading strategy for improved performance.
The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.
Free Download
Download the “Kwan.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Kwan Zig Zag mt4 indicator in action on the trading chart.
Trading Tips:
Utilize your own favorite trade entry, stop loss and take profit method to trade with the Kwan Zig Zag Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Signals
Repaint? No.
MT4 Scalping Strategy Using Kwan Zig Zag and XP Moving Average Indicators
This MT4 scalping strategy combines the Kwan Zig Zag Forex Indicator MT4 with the XP Moving Average Indicator MT4 to catch short-term trends and precise entry points.
The Kwan Zig Zag indicator provides clear buy and sell signals with its blue and red histogram lines.
The XP Moving Average confirms the trend direction with green for bullish and red for bearish trends.
This combination works well on lower timeframes such as M1, M5, and M15, making it suitable for scalpers who want to capture quick profits in volatile market conditions.
It is ideal for traders who prefer precise, signal-based entries without relying on complicated chart patterns.
Buy Entry Rules
- Ensure the XP Moving Average line is green, indicating a bullish trend.
- Wait for the Kwan Zig Zag histogram to turn blue.
- Enter a buy position at the close of the signal candle.
- Set the stop loss a few pips below the most recent swing low on the Kwan Zig Zag.
- Set the take profit at 1.5 to 2 times the stop loss distance or close partially at the next minor resistance level.
Sell Entry Rules
- Ensure the XP Moving Average line is red, indicating a bearish trend.
- Wait for the Kwan Zig Zag histogram to turn red.
- Enter a sell position at the close of the signal candle.
- Set the stop loss a few pips above the most recent swing high on the Kwan Zig Zag.
- Set the take profit at 1.5 to 2 times the stop loss distance or close partially at the next minor support level.
Advantages
- Simple and clear signal confirmation using two indicators.
- Works on multiple currency pairs and lower timeframes.
- Helps traders avoid entering against the main trend.
- Scalping-friendly with quick entries and exits.
Drawbacks
- Requires constant monitoring for lower timeframe scalping.
- Stop loss adjustments are crucial to avoid early exits in volatile moves.
Example Case Studies
Case Study 1
On the EUR/USD M5 chart, the XP Moving Average turned green, signaling a bullish trend.
Shortly after, the Kwan Zig Zag histogram turned blue.
A buy position was opened at 1.1050 with a stop loss at 1.1040.
The price quickly moved to 1.1065, hitting the take profit for a gain of 15 pips within 10 minutes.
This trade demonstrates the strategy’s ability to capture small, fast moves with minimal risk.
Case Study 2
On the GBP/USD M15 chart, the XP Moving Average line turned red, confirming a bearish trend.
The Kwan Zig Zag histogram then turned red, signaling a sell entry.
The position was opened at 1.2500 with a stop loss at 1.2510.
The price moved to 1.2475, achieving a profit of 25 pips in 30 minutes.
This example shows how combining trend confirmation and signal entry can improve the accuracy of scalping trades.
Strategy Tips
- Focus on currency pairs with higher volatility for better scalping opportunities.
- Use this strategy during active market sessions such as London or New York.
- Adjust stop loss and take profit based on the current volatility to reduce risk.
- Always wait for both indicators to confirm before entering a trade to avoid false signals.
- Consider combining with volume indicators for added confirmation in volatile periods.
