About the Gann Zig Zag Indicator
The Gann Zig Zag indicator for MT4 is a versatile trading tool based on classic Gann market principles.
It plots zig zag lines directly on the price chart to highlight meaningful price swings and directional momentum.
By filtering out minor price fluctuations, the indicator helps traders focus on the movements that truly matter.
The indicator is commonly used as both a trade entry and exit tool, as well as a confirmation filter for other strategies.
When the price closes above the purple zig zag line, it signals bullish momentum.
A close below the purple line signals bearish momentum.
This simple logic allows traders to make confident decisions without overloading their charts.
Free Download
Download the “gann-zig-zag-indicator.ex4” indicator for MT4
Key Features
- Draws Gann-based zig zag lines directly on the price chart
- Highlights bullish and bearish momentum shifts
- Can be used for trade entries and exits
- Acts as a confirmation filter for other indicators
- Works on all MT4 timeframes and instruments
- Reduces market noise by focusing on key price swings
Indicator Chart
The chart example shows the Gann Zig Zag indicator applied to an MT4 chart.
The purple zig zag line follows major price swings and defines momentum direction.
Price that closes above the line suggest bullish conditions, while close below signal bearish momentum.
Guide to Trade with the Gann Zig Zag Indicator
Buy Rules
- Wait for the price to close above the purple Gann Zig Zag line
- Confirm that recent price swings are forming higher highs
- Enter a buy trade after the candle close confirms momentum
Sell Rules
- Wait for the price to close below the purple Gann Zig Zag line
- Confirm that recent price swings are forming lower lows
- Enter a sell trade after the candle close confirms momentum
Stop Loss
- For buy trades, place the stop loss a few pips below the purple Gann Zig Zag line
- For sell trades, place the stop loss a few pips above the purple Gann Zig Zag line
- Adjust the distance based on the current timeframe and market volatility
Take Profit
- Target the next visible swing level on the chart
- Use a minimum risk-to-reward ratio of 1:2
- Trail the stop loss as new zig zag swings form
Practical Tips
- Use the indicator as a confirmation tool alongside trend indicators
- Wait for the candle to close rather than reacting to intrabar movements
- Apply higher timeframes to identify stronger momentum shifts
- Avoid trading during tight consolidation phases
- Combine with support and resistance for higher-probability setups
Gann Zig Zag + Gann Forex Scalper MT4 Scalping Strategy
This MT4 scalping strategy combines the Gann Zig Zag Forex Indicator with the Gann Forex Scalper Indicator.
It is ideal for intraday scalpers seeking to capitalize on quick moves in line with short-term trend changes.
The Gann Zig Zag Indicator identifies trend bias based on price relative to the purple GANN line: a close above signals a bullish trend, while a close below signals a bearish trend.
The Gann Forex Scalper gives precise entry points with green arrows for buys and red arrows for sells.
Buy Entry Rules
- Confirm that the price closes above the purple line on the Gann Zig Zag Forex Indicator to indicate bullish momentum.
- Wait for the Gann Forex Scalper to plot a green arrow.
- Enter a buy trade at the open of the next candle after the green arrow appears.
- Place a stop loss below the recent swing low or a nearby support level.
- Take profit at the next minor resistance, major resistance, or a dynamic pip target based on volatility.
Sell Entry Rules
- Confirm that the price closes below the purple line on the Gann Zig Zag Forex Indicator to indicate bearish momentum.
- Wait for the Gann Forex Scalper to plot a red arrow.
- Enter a sell trade at the open of the next candle after the red arrow appears.
- Place a stop loss above the recent swing high or a nearby resistance level.
- Take profit at the next minor support, major support, or a dynamic pip target based on volatility.
Advantages
- Effective for spotting short-term trend reversals and breakouts.
- Clear and visually intuitive signals reduce decision-making time.
- Suitable for multiple forex pairs, including EUR/GBP, AUD/USD, and USD/JPY.
- Scalper arrow confirmation helps improve entry timing and trade precision.
- Allows flexibility with multiple take-profit targets to manage risk and reward.
Drawbacks
- Less reliable in highly choppy or sideways markets.
- Requires active monitoring due to fast-moving intraday signals.
- It can produce frequent small losses if trades are entered prematurely.
- Performance may vary depending on pair volatility and session liquidity.
- Stop losses can be triggered by sudden spikes or slippage, especially during news events.
Case Study 1: AUD/USD 5-Minute Chart
On the AUD/USD 5-minute chart, the price closed above the purple Gann Zig Zag line, indicating a bullish trend.
Shortly after, the Gann Forex Scalper displayed a green arrow at 0.6720.
A buy trade was entered with a stop loss at 0.6705.
The price advanced to the next minor resistance at 0.6740, then reached major resistance at 0.6755, capturing 20–35 pips.
This demonstrates how the strategy can effectively ride short-term upward trends.
Case Study 2: EUR/GBP 1-Minute Chart
On the EUR/GBP 1-minute chart, the price closed below the purple Gann Zig Zag line, signaling bearish momentum.
The Gann Forex Scalper plotted a red arrow at 0.8690.
A sell trade was executed with a stop loss at 0.8702.
The price dropped to minor support at 0.8675, then extended to major support at 0.8665, capturing 15–25 pips.
This shows the strategy’s ability to capture quick intraday declines on different pairs.
Strategy Tips
- Focus on high-liquidity pairs to reduce spread costs and slippage.
- Combine with higher timeframe trend analysis to confirm the short-term direction.
- Scale out of positions at multiple support or resistance levels to secure profits.
- Monitor news events to avoid entering trades during potential volatility spikes.
- Keep a trading journal to track entry timing, exits, and overall performance for optimization.
- Practice on a demo account before applying to live accounts to refine reaction times to signals.
Download Now
Download the “gann-zig-zag-indicator.ex4” indicator for Metatrader 4
FAQ
Does the Gann Zig Zag indicator repaint?
The indicator updates zig zag lines as new swing points are formed.
Completed swings remain fixed once confirmed by price action.
Is this indicator suitable for scalping?
Yes. On lower timeframes it can be used for scalping, but stricter confirmation is recommended to avoid false signals.
Can I use the Gann Zig Zag for trade exits?
Many traders exit trades when price closes back on the opposite side of the purple line.
This often signals weakening momentum.
Does it work well with other indicators?
Yes. It combines effectively with moving averages, trend filters, and momentum oscillators.
It helps confirm direction before entering a trade.
Summary
The Gann Zig Zag indicator for MT4 offers a practical way to analyze market momentum and swing direction.
Its zig zag lines simplify price action and help traders identify reliable entry and exit points.
The indicator is easy to use, flexible, and suitable for a wide range of trading styles.
It combines well with trend-following indicators such as moving averages or channel-based tools.
This combination helps traders stay aligned with dominant momentum while filtering out low-quality setups.
With disciplined execution and proper risk management, the Gann Zig Zag indicator can be a valuable addition to any MT4 trading strategy.
