DT ZigZag is a free mt4 (Metatrader 4) signal indicator that provides traders with powerful market insights with the help of the ZigZag trading method.
The indicator appears in the main MT4 chart window and draws the ZigZag formations on the chart.
Trade Idea
- Open a buy trade as soon as the DT ZigZag indicator starts printing the blue colored dots on the chart.
- Open a sell trade as soon as the DT ZigZag indicator starts printing the red colored dots on the chart.
The DT ZigZag indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “dt-zz-indicator.mq4” indicator for MT4
Indicator Example Chart (EUR/USD H1)
The example chart below displays the DT ZigZag mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the DT ZigZag 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
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: ZigZag
Does the indicator repaint? No.
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.
Example Case Studies
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
