Multiple ZigZags in a single window Indicator For MT4
Table Of Contents:
- Multiple ZigZags in a single window Indicator For MT4
- Trading ideas with the Multiple ZigZags in a single window Indicator For MT4
- Multiple ZigZags in a single-window Indicator For MT4 - Trendlines
- Multiple ZigZags in a single window Indicator For MT4 -Reversals
The Multiple ZigZags in a single window Indicator For MT4 plots four ZigZag indicators from four different time frames (H1, H4, D1, W1) on a single chart window. The color scheme of the different ZigZags are listed below: H1 - Red H4 - Orange D1 - Green W1 - Blue
Trading ideas with the Multiple ZigZags in a single window Indicator For MT4
When it comes to technical analysis, one of the most important roles you will assume in this process is to identify swing highs and swing lows. You need to be able to do this as accurately as possible because these swing lows and swings highs actually form the basis of most trading strategies and trading directives.
So do your best to get this right. To achieve this manually, what you will do is maybe throw in a trendline then mark off the different swing lows and swing highs that are most apparent to your eye. And then from there, you look for candlestick patterns or breakouts that inspire you or trigger you to open a buy or sell trades. However the manual route can be labor-intensive and you can also leave yourself exposed and prone to inaccuracies.
How you see the market relative to the swing lows and swing high can be misleading at times. Therefore, you need an indicator that is able to do this for you in a way that is more reliable - and that is why this indicator was created the zigzag indicator.
Multiple ZigZags in a single-window Indicator For MT4 - Trendlines
If you look at the price action activity, it is a summation of price movements that form zigzag patterns. That is all there is to it. The reduced form of all trading activity in the market is an accumulation of zigzag movements due to the ever-changing buying and selling dynamic.
Therefore zigzag indicators actually simplify or sum up the underlying trading activity. In most cases, when I use a zigzag indicator I use it to draw my trend lines. Simply because the zigzag indicator has sharp turning points that are initiated by the zigzag indicator. I use these turning points as my two or three connecting points or touch points for my trend lines.
If I am drawing an uptrend line I will look for moments where the indicator made a downswing and then a sharp upswing. Connecting these two points will form the support uptrend line. When drawing trend lines for the downtrend, I will look for two to three points where the zigzag indicator went from making an upswing and then proceeded with a sharp downswing.
Once these two points are connected then I will have a proper resistance downtrend line drawn so that I can actually pinpoint the moments where the price action initiates possible breakouts for subsequent or likely reversals. The image below shows where I have actually done exactly that using the indicator zigzag indicator.
As you can see in the above image, I have drawn in the resistance downtrend lines with two touches of the zigzag. The uptrend line is a support uptrend line. In most cases two touches will be enough so that is what I went with in this example.
Just by taking a proper look at the screenshot above you can see that there are more than one zigzag indicator in the picture. This is because this indicator is a multiple zigzag indicator which prints zigzags from different time frames - from the hourly, 4-hour, daily and weekly time frames.
As mentioned in the introduction, each zigzag indicator has its own color code. The red one being the 1-hour zigzag, the orange one is the 4-hour chart, the green one is the daily time frame, and the blue one is the weekly zigzag. In the screenshot you will not see the weekly zigzag because the time frame is just too small as I am using an hourly time frame.
In most cases you will not see the weekly time frame especially when you are on the lower time frames such as the hourly chart.
Multiple ZigZags in a single window Indicator For MT4 -Reversals
The multiple zigzag indicators is great if you want to trade reversal opportunities. The best chart to do that on is on the hourly time frame. Because on the hourly time frame you can see most of the zigzag indicators in one frame. Like in the image above, I have at least three zigzag indicators in one time frame. So if indeed you want to use it as a reversal tool, you will need to rely on confluence.
By confluence, I mean that you need to look at or identify moments in the market where the zigzag indicators all come together at a specific point just like the image I have referenced above. However, we can explore this trading idea in more detail right now.
The screenshot above shows the market coming from a downtrend, and you can see that I have also drawn in the resistance downtrend line in the previous downtrend. Now at the exhaustion point of this downtrend, there was a zigzag confluence with the hourly, 4-hour and the daily chart zigzags coming into confluence.
This was the perfect or ideal moment to buy because this a strong reversal to the upside. Therefore, if you looking for entry points you can wait for the market to break the resistance downtrend line or you can wait for the market to come back and retest one of the potential support areas right after the market has broken out. However, if you execute this trading strategy correctly, you can still achieve proper results provided you are able to correctly identify the confluence of all or three zigzags.