The Zig Zag buy/sell indicator for Metatrader 4 delivers solid trading signals based on the Zig Zag trading algorithm.
The indicator gets displayed in the main chart window as simple-to-follow red buy & sell signal arrows.
The signals are connected with a dotted line.
Key Points
- Signal indicator
- Newbie friendly
- Works for any time frame
- Well worth adding to your indicator collection
This indicator can work together with any existing trading strategy or system as a buy & sell signal confirmation tool.
Free Download
Download the “zig-zag-buy-sell.mq4” MT4 indicator
Trading Chart
The EUR/USD 5-minute chart below shows the Zig Zag buy/sell Forex indicator in action.
Buy/Sell Trading Signals
BUY:
- A buy signal is given when the red “up” arrow appears on the chart.
- Set stop loss below short-term support.
- Exit the buy trade for a predetermined profit target or wait for a sell signal.
SELL:
- A sell signal is given when the red “down” arrow appears on the chart.
- Set stop loss above short-term resistance.
- Exit the sell trade for a predetermined profit target or wait for a buy signal.
Download Now
Download the “zig-zag-buy-sell.mq4” MT4 indicator
Zig Zag Buy/Sell Indicator with 200 EMA Trend Filter MT4 Strategy
This strategy uses the Zig Zag Buy/Sell Forex Indicator to identify potential trade signals, combined with the 200 EMA (Exponential Moving Average) to determine the overall trend direction.
This helps to enter trades only in the direction of the main trend, improving the probability of success.
Chart Setup
- Timeframe: 15-minute or 30-minute charts
- Indicators: Zig Zag Buy/Sell Forex Indicator, 200 EMA
- Currency Pairs: Major pairs such as EUR/USD, GBP/USD, USD/JPY
Entry Rules
- Buy Signal: Enter a long position when the Zig Zag indicator shows a buy signal (e.g., an upward arrow) and the price is trading above the 200 EMA, indicating an overall uptrend.
- Sell Signal: Enter a short position when the Zig Zag indicator shows a sell signal (e.g., a downward arrow) and the price is trading below the 200 EMA, indicating an overall downtrend.
Exit Rules
- Stop-Loss: Place a stop-loss just below the recent swing low for buy trades, or above the recent swing high for sell trades.
- Take-Profit: Use a fixed pip target or exit when the Zig Zag indicator signals a reversal in the opposite direction.
Example
On a 15-minute GBP/USD chart, if the Zig Zag indicator signals a buy and the price is above the 200 EMA, this confirms the uptrend and suggests a good entry point for a long trade. Place your stop-loss below the recent swing low and target a favorable risk-reward ratio for take-profit.
Additional Strategy Tips
- Confirm the strength of the trend by checking the slope of the 200 EMA; a steep slope indicates a strong trend.
- Avoid taking trades when the price is close to the 200 EMA to reduce false signals.
- Backtest this strategy on different pairs and timeframes to find what works best for your trading style.
Combining the Zig Zag Buy/Sell Forex Indicator with the 200 EMA trend filter allows traders to align trades with the broader market trend, increasing the likelihood of profitable trades.
Adjustable Indicator Parameters & Settings
Slalom, colors, style
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Tool
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: any
Indicator Type: signals
Final Thoughts
The Zig Zag Buy/Sell Forex Indicator for MT4 is a straightforward tool designed to assist traders in identifying potential market reversals.
By displaying clear buy and sell signals directly on the chart, it simplifies decision-making processes.
The indicator’s non-repainting nature ensures that once a signal is formed, it remains stable, providing consistent results.
Its versatility allows it to be used across various timeframes and currency pairs, making it adaptable to different trading strategies.
Whether used in conjunction with other indicators or as a standalone tool, the Zig Zag Buy/Sell Forex Indicator can enhance trading decisions by providing clear and actionable signals.
