The zigzag indicator in MT4 can be used to identify forex price trends by plotting any price reversals and connecting them with straight lines. This simple scalping trading strategy helps to eliminate market noise and smooth out price fluctuations to reveal underlying swing highs and swing lows.
The strategy works best in trending markets, making it a good choice for popular currency pairs on a 1-minute or 5-minute time frame. The aim is to plot the points when the price reverses by a percentage greater than the specified level.
Follow our steps on how to day trade scalping forex with a zigzag indicator:
- Choose your starting point and set your percentage price movement
- Identify any swings that differ from the price movement and are greater than your pre-defined price movement
- Draw a straight trendline from your starting point to the new point
- Identify the next swing and draw the trendline; repeat
Many traders prefer to combine this scalping trading strategy with Elliott Wave analysis or even using RSI or Stochastics. Whilst this strategy might not be best for indicating a time for entry or exit into a trade, it’s a good way for scalpers to confirm the direction of a trend.
Note that you will need to download the zigzag indicator from the MetaTrader Market where there are hundreds of other scalping indicators to browse as well.
Leave a Reply