Zig and Zag Forex Trading Strategy

The Zig and Zag forex strategy can predict price actions via the use of the ZigAndZag.ex4 and ZeroLag_MACD.ex4 Metatrader 4 custom indicators.

It is a trading system that tries to remove haphazard price fluctuations, while attempting to make money off the market when changes in trend are witnessed.

Chart Setup

MetaTrader4 Indicators: ZigAndZag.ex4 (default setting), ZeroLag_MACD.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Day

Recommended Trading Sessions: Any

Currency Pairs: USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF

Download

Download the Zig and Zag Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following chart or indicator patterns are in display:

  1. If the red upward pointing arrow of the ZigAndZag.ex4 custom indicator forms below price bars, while candlesticks align above the aqua dotted line of the indicator, it is an indication to go long on the instrument of interest.
  2. If the magenta histogram of the ZeroLag_MACD.ex4 custom indicator forms above the 0.00 signal line, it is a trigger to go long.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following rules or conditions holds true:

  1. If the red downward pointing arrow of the ZigAndZag.ex4 custom indicator forms above price bars, or price opens and closes below the aqua dotted line of the indicator, it is an indication exit or take profit accordingly.
  2. If the orange line and the of the magenta histogram of the ZeroLag_MACD.ex4 custom indicator crosses the 0.00 signal line as seen on Fig. 1.0 (downwards), it is a trigger to exit or take profit accordingly.

Sell Entry Rules

Enter a sell order if the following chart or indicator patterns are in display:

  1. If the red downward pointing arrow of the ZigAndZag.ex4 custom indicator forms above price bars, while candlesticks align below the aqua dotted line of the indicator, it is an indication to go short i.e. a sell entry.
  2. If the magenta histogram of the ZeroLag_MACD.ex4 custom indicator forms below the 0.00 signal line, it is a trigger to go short i.e. a sell entry.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following are true:

  1. If the red arrow of the ZigAndZag.ex4 custom indicator forms below price bars (pointing upwards), or price opens and closes above the aqua dotted line of the indicator, it is an indication exit or take profit accordingly.
  2. If the orange line and the of the magenta histogram of the ZeroLag_MACD.ex4 custom indicator breaks above the 0.00 signal line as seen on Fig. 1.1, it is a trigger to exit or take profit accordingly.

Fig. 1.1

Free Download

Download the Zig and Zag Forex Trading Strategy

About The Trading Indicators

The ZigAndZag.ex4 custom indicator is an MT4 indicator that functions like a filter and it used to eliminate unwanted noise from the activity chart, giving it the power to focus on critical trends, not irrelevant oscillations.

The ZeroLag_MACD.ex4 is a leading indicator and an improved version of the traditional MACD indicator.

It tries to reduce the lagging effect witnessed on the original MACD indicator.

The ZeroLag_MACD.ex4 custom indicator indicates a buy signal when its histogram forms above the zero signal line, while a sell is depicted by its histogram forming below the zero signal level.

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