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Zig Zag Forex Trading System

    The zig zag trading system consists of 3 simple forex indicators and is designed to trade breakouts in the overall direction of the currency trend, which is determined by a simple moving average.

    A special zig zag indicator is used to trade the market breakout itself.

    The concept is very simple to understand and to trade, just take a look below how it works and download the system if you like it.

    Chart Setup

    Used indicators: 100 period simple moving average, NonLagZigZag, octopus_1
    Preferred time frame(s): 5 minute chart and higher
    Trading sessions: London and New York for M5 chart. Any session for M15 chart and higher.
    Best currency pairs: any

    Download

    Download The Zig Zag Forex Trading System.

    Example: EUR/USD 15 Minute Chart

    zig-zag-forex-trading-system

    Take a look at EUR/USD price chart above (click the image to enlarge), this is a really effective, yet easy to trade forex system.

    The zig zag fx system provided us with 3 trades, 1 buy trade and 2 sell trades.

    All trades ended up profitable.

    Take some time to learn the trading rules below and practice on a demo account first.

    Trading Rules

    Buy:

    • Price trades above the 100 SMA
    • Octopus_1 trendbars green color
    • Price breaks above the previous zig zag indicator high peak

    ==> Open buy position 1 pip above the previous zig zag indicator high peak price.

    Stop-Loss: Place a protective stop-loss 1-2 pips below the most recent support level.

    Price Target: Exit the buy trade at risk-to-reward 1:2 or better.

    Sell:

    • Price trades below the 100 SMA
    • Octopus_1 trendbars red color
    • Price breaks below the previous zig zag indicator low peak

    ==> Open sell position 1 pip below the previous zig zag indicator low peak price.

    Stop-Loss: Place a protective stop-loss 1-2 pips above the most recent resistance level.

    Price Target: Exit the sell trade at risk-to-reward 1:2 or better.