Zigzag With Fibo Indicator
MT4Also Available for MT5Zigzag With Fibo Indicator For MT4 combines zigzag and Fibo levels to provide trend direction and profitable forex trading entry and exit points.
Description
The Zigzag with FIbo indicator for MT4 combines two powerful classic indicators to provide the best possible entry and exit conditions. Forex traders can use the Zigzag to identify trend direction while the FIbo retracements provide best entry point during a pullback.
The indicator works best in all chart time frames and is suitable for intraday trading and long term forex trading. Moreover, the simplicity of this trading indicator doubles as a trading system for both new and advanced forex traders.
Zigzag With Fibo Indicator For MT4 Trading Setup
The indicator automatically plots the Zigzag, once the Zigzag identifies a top and a bottom the Fibo comes into technical analysis. Similarly, the indicator automatically plots the FIbo levels once the Zigzag identifies the low and high.
In an uptrend, traders can enter the markets with a BUY position once the price retraces and bounce back from the first two levels of Fibo levels. However, a break below these levels may indicate a deeper market correction or a trend reversal.
Similarly, forex traders can place a SELL trade once Fibo levels are drawn during a downtrend. A stop loss above the previous Fibo level or at the Zigzag reversal point invalidates the trade.
The trading strategy is based on the price continuing in the trend direction of ZigZag after the pull back. Since the trading strategy looks for a potential bounce back from a Fibo level traders should apply price action for additional confirmation of the reversal,
Conclusion
In summary, the Zigzag with Fibo indicator for MT4 provides the best of two indicators. It provides trend identification with entry and exit levels during a pullback.
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