The ZigZag Fibonacci MT4 forex indicator is a smart variation of the traditional ZigZag MT4 indicator.
Similar to the traditional version, this one also connects bottoms and tops directly on the activity chart but also adds Fibonacci levels to the chart.
In short, why use ZigZag:
With ZigZag, you can see directly on the chart higher tops, higher bottoms or lower tops and lower bottoms.
So you know the trend is either up trending or down trending and you can anticipate the next possible move.
Why is adding Fibonacci to ZigZag smart?
When the market is in an uptrend (spotted by the ZigZag forex indicator), you look to buy the currency pair around the 38.2% Fibonacci retracement level (buy on dips).
Vice versa, when the market is in a downtrend (spotted by the ZigZag forex indicator), you look to sell the currency pair around the 38.2% Fibonacci retracement level (sell on dips).
Free Download
Download the “ZigZagFibonacci.mq4” MT4 indicator
Indicator Chart (CHF/JPY H4)
The CHF/JPY H4 chart below displays the ZigZag Fibonacci forex indicator in action.
Basic Trading Signals
See the description above on how to trade efficiently with the ZigZag Fibonacci indicator.
ZigZag Fibonacci & CCI ATR Super Trend Forex Day Trading Strategy for MT4
This MT4 day trading strategy combines trend identification with precise retracement entries.
It uses the ZigZag Fibonacci Metatrader 4 Forex Indicator to identify uptrends and downtrends and spot optimal Fibonacci retracement levels for entries.
The 38.2% retracement level serves as a pullback entry point, buying on dips in an uptrend and selling on rallies in a downtrend.
The CCI ATR Super Trend Metatrader 4 Forex Indicator confirms momentum direction with a Super Trend signal line, where green indicates bullish bias and red indicates bearish bias.
This strategy works best on M15 and M30 timeframes and is suitable for active day traders seeking structured trade setups with high-probability entries.
Combining trend-based Fibonacci pullbacks with Super Trend confirmation helps filter false signals and improve the timing of entries and exits.
Buy Entry Rules
- Identify an uptrend using the ZigZag Fibonacci indicator.
- Wait for the price to pull back to the 38.2% Fibonacci retracement level of the recent swing.
- Confirm a buy signal when the CCI ATR Super Trend line changes from red to green.
- Enter a buy trade immediately after the Super Trend line turns green at or near the 38.2% retracement.
- Place the stop loss below the most recent swing low or a nearby support level.
- Close the trade when the Super Trend line turns red.
Sell Entry Rules
- Identify a downtrend using the ZigZag Fibonacci indicator.
- Wait for the price to retrace to the 38.2% Fibonacci level of the recent swing high.
- Confirm a sell signal when the CCI ATR Super Trend line changes from green to red.
- Enter a sell trade immediately after the Super Trend line turns red at or near the retracement level.
- Place the stop loss above the most recent swing high or a nearby resistance level.
- Close the trade when the Super Trend line turns green.
Advantages
- Combines Fibonacci retracement with trend confirmation for high-probability entries.
- Works well on M15 and M30 charts, ideal for intraday traders.
- Reduces the risk of entering against the main trend by requiring Super Trend confirmation.
- Helps capture pullback trades with optimal risk to reward ratios.
Drawbacks
- Requires patience to wait for price to reach retracement levels and for Super Trend confirmation.
- Small retracement bounces may be skipped if the price moves quickly past the 38.2% level.
- Stop loss may be hit if price breaks key support or resistance levels beyond the expected retracement.
Case Study 1
On CHFJPY M15 during the London session, the ZigZag Fibonacci indicator confirmed an uptrend.
Price retraced to the 38.2% Fibonacci level.
The CCI ATR Super Trend line flipped from red to green, signaling a buy.
A buy trade was entered with the stop loss below the recent swing low.
Price moved upward steadily, and the trade was closed when the Super Trend line turned red, netting 21 pips.
Case Study 2
On AUDUSD M30 during the New York session, the ZigZag Fibonacci indicator confirmed a downtrend.
Price retraced to the 38.2% Fibonacci level from the previous high.
The CCI ATR Super Trend line changed from green to red, signaling a sell.
A sell trade was executed with a stop loss above the recent swing high.
Price declined in line with the trend and the trade was closed when the Super Trend line turned green, capturing 44 pips.
Strategy Tips
- Trade only when the trend direction identified by ZigZag aligns with the Super Trend signal.
- Wait for the price to approach the 38.2% retracement level for optimal risk to reward.
- Focus on high liquidity sessions to reduce slippage and improve execution.
- Skip trades if price moves too quickly past the retracement without a clear signal.
- Use the Super Trend color change to manage exits efficiently and capture the majority of the intraday move.
- Keep a trading log to evaluate which pairs and timeframes provide the most consistent retracement setups.
Download Now
Download the “ZigZagFibonacci.mq4” MT4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (ExtDepth, ExtDeviation, ExtBackstep) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Pattern | Fibonacci
