Zig Zag indicator is a default indicator that is freely available on MT4. Many traders have no idea how to use this indicator in finding good moves in the market. So let’s discuss how to use the Zig Zag indicator in forex trading. One of the most important use for this indicator is finding chart patterns that signal a potential trend reversal. Zig Zag indicator can be used to find the divergences on the different oscillators.
The Zig Zag indicator operates as a filter for directional changes in price movements. Technical analysts and forex traders apply the Zig Zag filter to remove unnecessary noise from the price chart; the goal is to focus on the important trends, not insignificant fluctuations. This indicator is less ambitious than many other technical tools and should never act as a trading system on its own. Instead, the Zig Zag indicator is best used to highlight important patterns and confirm possible trend reversals.
The video below explains how you are going to use this Zig Zag indicator!
This video explains in detail how the pros trade with the Zig Zag pattern!
This video explains the Zig Zag Breakout Strategy!
Zig Zag indicator can be used to find the divergence on the different oscillators. The 2 videos below explain how to use the Zig Zag Indicator to find the divergence on RSI oscillator.
This is the second part of the above video!