About the DT ZigZag Forex Signals Indicator
The DT ZigZag Forex Signals Indicator for MT4 is a practical trading tool designed to highlight important market swings using the well-known ZigZag trading method.
It appears directly on the main MetaTrader 4 chart and draws zigzag formations that connect significant highs and lows, helping traders focus on meaningful price movements instead of minor fluctuations.
Unlike standard ZigZag indicators that only draw lines, the DT ZigZag adds clear visual dot signals to indicate potential changes in market direction.
When momentum shifts, the indicator prints colored dots on the chart, making it easier to identify possible entry and exit points without complicated analysis.
This indicator is useful for traders who want to understand market structure and trend behavior.
It can be used as a standalone signal tool or as an additional confirmation layer for other strategies.
Because it filters out market noise, it helps traders stay patient and avoid overtrading during choppy conditions.
Free Download
Download the “dt-zz-indicator.mq4” indicator for MT4
Key Features
- Plots ZigZag formations directly on the MT4 price chart
- Blue and red dot signals for clear visual trade ideas
- Highlights major swing highs and swing lows
- Works on all currency pairs, including majors and exotics
- Suitable for any timeframe
- Can be used for entries, exits, or trade confirmation
Indicator Chart
The chart below displays the DT ZigZag Forex Signals Indicator plotted on the main price chart.
The zigzag lines connect key turning points, while colored dots mark potential changes in direction.
In this example, blue dots appear when bullish swings begin, and red dots show when bearish swings start.
This visual structure helps traders quickly assess trend direction and possible trade setups.
Guide to Trade with DT ZigZag Forex Signals Indicator
Buy Rules
- Wait for the DT ZigZag indicator to start printing blue colored dots
- Ensure price is not directly below strong resistance
- Confirm the swing structure supports bullish movement
- Open a buy trade after the candle with the blue dot closes
Sell Rules
- Wait for the DT ZigZag indicator to start printing red colored dots
- Check that price is not sitting on major support
- Confirm bearish swing structure is forming
- Open a sell trade after the candle with the red dot closes
Stop Loss
- Place a stop loss below the last swing low for buy trades
- Place a stop loss above the last swing high for sell trades
- Allow enough space for normal market fluctuations
Take Profit
- Target the next visible swing high or swing low
- Consider exiting when an opposite colored dot appears
Practical Tips
- Higher timeframes provide clearer and more reliable swing signals
- Combine with trend filters to avoid counter-trend trades
- Avoid trading during low-liquidity market sessions
DT ZigZag Signals + Renko Boxes MT4 Strategy
Introduction
This MT4 strategy combines the DT ZigZag Forex Signals with the Renko Boxes Forex Indicator.
DT ZigZag highlights swing highs and lows and prints clear signal points.
Renko Boxes remove time noise and show clean trend blocks. Together, they give swing-confirmation entries and a robust trend filter.
The system works well on short intraday timeframes where Renko reduces choppiness: use M5–M30 for active trading and H1 for small swing trades.
It is suitable for traders who want structured entries based on swing points while using Renko to follow trend momentum and define stops.
Buy Entry Rules
- Renko Boxes must be showing bullish blue bricks (consecutive bullish Renko blocks).
- DT ZigZag must print a recent swing low or a bullish signal arrow after a pullback.
- Enter long on the first candle close that confirms the ZigZag low when Renko is bullish.
- Stop Loss: place stop below the ZigZag swing low or below the low of the last bearish Renko brick, whichever is lower risk for your account.
- Take Profit: set initial target at 1.5–2.0 × risk. Alternatively, trail the trade as new bullish Renko bricks form and exit on the first bearish Renko reversal or a bearish ZigZag signal.
- If the market shows consecutive small Renko bricks against your entry, avoid or reduce position size (volatility filter).
Sell Entry Rules
- Renko Boxes must be showing red bearish bricks (consecutive bearish Renko blocks).
- DT ZigZag must print a recent swing high or a bearish signal arrow after a pullback.
- Enter short on the first candle close that confirms the ZigZag high while Renko is bearish.
- Stop Loss: place stop above the ZigZag swing high or above the high of the last bullish Renko brick.
- Take Profit: target 1.5–2.0 × risk or trail as new bearish Renko bricks form. Exit on the first bullish Renko reversal or a bullish ZigZag signal.
- Avoid entering immediately after a long sequence of bricks in the same direction without a pullback — wait for a ZigZag swing confirmation.
Advantages
- Renko reduces noise and helps capture clean trending moves.
- ZigZag identifies structural swing points for logical entries and stops.
- Combining both yields disciplined entries and easy-to-follow exits.
- Works across multiple short-term timeframes and adapts to scalping or small swing trading.
Drawbacks
- Renko box size must be tuned per pair and session; a wrong size gives late or early signals.
- ZigZag is a lagging/smoothing tool — it may repaint relative swings and can produce late confirmations in sudden reversals.
- During extremely choppy markets, there will be false bricks and multiple small ZigZag swings.
- Requires backtesting to find optimal Renko brick size and ZigZag settings per currency pair.
Case Study 1 — EURUSD 15m (Short intraday setup)
On a 15-minute EURUSD chart with Renko bricks set to 6 pips, Renko showed two bullish bricks after a pullback.
DT ZigZag printed a clear swing low at 1.0790. When the next candle closed above the ZigZag low confirmation, a long was entered at 1.0793.
Stop was placed at 1.0775 (18 pips). First target at 1.0821 (1.5R) was hit within four hours.
The remainder was trailed until a bearish Renko reversal closed the trade for about 34 pips total.
Case Study 2 — USDJPY 5m (Scalp using tight Renko)
On USDJPY 5-minute with Renko bricks at 3 pips, the Renko series turned bearish after a short retracement.
DT ZigZag printed a swing high at 153.12, and a bearish arrow appeared.
A short entry at 153.10 was taken with a 12-pip stop above the swing (153.22). The pair moved quickly, hitting the 1.5R target (about 18 pips) in 25 minutes.
The trade was closed when a bullish Renko brick formed, yielding a clean scalp of ~18 pips.
Strategy Tips
- Calibrate Renko brick size per instrument and session — higher-volatility pairs need larger bricks.
- Confirm signals with a higher timeframe Renko trend or a simple moving average to avoid trading against major moves.
- Use position sizing so each trade risks no more than 1–2% of equity.
- Avoid trading around major news; Renko can produce misleading single-brick flips during spikes.
- Backtest ZigZag depth and reversal parameters with your chosen Renko size to find the best balance of responsiveness and reliability.
- Consider using an ATR filter to adapt stop sizes when volatility changes rapidly.
Combining DT ZigZag Forex Signals with the Renko Boxes Forex Indicator gives a clear, swing-based approach on MT4.
Use careful parameter tuning and risk management to make the system reliable across pairs and sessions.
Download Now
Download the “dt-zz-indicator.mq4” indicator for Metatrader 4
FAQ
Does the DT ZigZag indicator repaint?
Like most ZigZag-based tools, the indicator may adjust while a swing is still forming.
Once a swing point is confirmed, the dot remains fixed and can be used for decision-making.
Is this indicator suitable for scalping?
It can be used on lower timeframes, but signals may change more frequently.
Many traders prefer H1 and above for clearer swing identification.
Can I use DT ZigZag for trade exits?
Yes, the indicator is often used to trail exits by following swing points or closing trades when an opposite colored dot appears.
Does it work on all currency pairs?
The DT ZigZag indicator works on all currency pairs, including major, minor, and exotic pairs, as long as the market has sufficient liquidity.
Summary
The DT ZigZag Forex Signals Indicator for MT4 offers a clean and structured way to analyze market swings and trend direction.
Combining ZigZag formations with colored dot signals helps traders identify meaningful price movements without unnecessary complexity.
Its flexibility allows it to be used for entries, exits, or confirmation across different trading styles and timeframes.
With disciplined risk management and proper context, it can be a valuable tool for understanding market structure and improving trade timing.
