ZigZagColor Indicator For MT5

ZigZagColor Indicator For MT5

Table Of Contents:

  1. ZigZagColor Indicator For MT5
  2. Trading ideas with the ZigZagColor Indicator For MT5
  3. ZigZagColor Indicator For MT5 - Buy Entries
  4. ZigZagColor Indicator For MT5 - Sell Entries
  5. ZigZagColor Indicator For MT5 - Conclusion

The ZigZagColor Indicator For MT5 is a colored implementation of the well known zigzag indicator. The upward swings are drawn with blue color. The downward swings are drawn with red color.

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The ZigZagColor Indicator For MT5 shows the exact retracement level in a different color. People who are used to the red colored ZigZag indicator used to get confused when the volatility of the market increased after the key news. Considering the crisis of the novice and intermediate trader, the developers have come up with the unique ZigZagColor indicator.

This indicator marks the bullish movement with the blue line and the bearish movement with the red color. The color changes in the linear line take place at the minor and major SR levels. The idea behind this indicator might be very simple but the investors need to know the precise way to open the trades.

For that, the traders have to develop a very structured trading method. The success of any system greatly depends on the quality of the trade setup. So, it’s very obvious you need to have a very structured way of trading. Those who are looking to integrate the ZigZag indicator in a lower time frame, often make mistakes as the SR level is not that valid. Let’s get to details of creating a well-structured edge for this ZigZagColor indicator.


Trading ideas with the ZigZagColor Indicator For MT5


Always remember the integration of a new indicator works best in a higher time frame. If you are looking to integrate the ZigZagColor indicator into the scalping system, you have to very careful with the candlestick patterns. The trade execution becomes much more precise when you take trades in a higher time frame. However, if you trade in a lower time frame, analyze the quality of the price action setup.

Since the complexities rise in a lower time frame, we recommended creating the system using a high time frame. After you develop the trading method, match the color of the ZigZagColor indicator to get the best result. It might be confusing for the retail traders and causes you to miss the trade. Consider it as a common problem in the learning stage and focus on the next phase. Let’s move to the buying and selling method with the help of this ZigZagColor indicator.


ZigZagColor Indicator For MT5 - Buy Entries




Finding the demand zone is an easy task provided that you rely on the manual trading system. Those who rely on the moving average to execute long trade must learn to offset the latency issues. The rookies are encouraged to take the trades at the critical support drawn by the horizontal lines.

After spotting the horizontal line, you have to look at the quality of the PA signal. Look for the combination candlestick pattern to improve the chance of winning the trade. In case, you are using an indicator-based trading method, be sure to focus on the hourly or the daily chart. After the buying signal is confirmed, get back to the ZigZagColor indicator.

The indicator line will change to the blue right once the algorithm gets the assurance that the support level will hold. You will notice a steady rise in blue color and that will act as the confirmation to open the long order. Evaluate the risk to reward ratio, risk factor, and the sentiment of the market for one last time. If everything seems perfect, open the long trade. But still, you have to open-minded to the losing trades.


ZigZagColor Indicator For MT5 - Sell Entries




You should have a good idea of how the long orders at taken at the support. But the long orders can also be taken at the break of the supply or resistance zone. We will illustrate the sell trade setup by using the concept of the breakout trading method. The sample rule can be applied to take long trade at the break of resistance.

Choosing the support level is crucial as you will be opening the trade at the break. The weak or minor support levels are the most suited one for this purpose. If the bulls fail to clear out the resistance in multiple attempts chances are high you will experience a strong bearish reversal.

As the price test the support zone, try to identify the bearish candlestick pattern to open the trade. During the testing of the support level, the line in the ZigZagColor indicator will still be red. This is another indication that the support level will not hold. Once the candle break below the support, wait for the closing of the price.

A bearish closing opens the door to execute the new short. Even after the closing of the candle, you should see a red color line in the ZigZag color indicator. The advanced traders often look for supporting news to get confirmation that the support level is broken. But this is a very sophisticated technique and requires special skill.

Unless you are versed in fundamental news, you should not follow this step. You can also look for the short trade setups at the resistance and the ZigZagColor indicator will change its color to red right after the test of the important high.


ZigZagColor Indicator For MT5 - Conclusion


We have illustrated all the possible use of the ZigZagColor indicator. Those who have read this article with attention can easily sync the indicator with any kind of trading method. However, the lower time frame trader should be careful with the synchronization process. They need to evaluate the risk profile and RR ratio in the demo platform first.

If the result is satisfactory, they can keep on using the ZigZag color indicator. On the contrary, those who are looking for a safe and sound method should get a higher time frame trading method. Use the HFT system with the ZigZag color indicator and see significant changes to your trading system. Slowly learn to analyze the key news as it can improve the efficiency and allow you to trade with a high RR ratio.

But news trading is always complex and it increases the risk factors to a great extent. Know about the key difference between low, medium, and high impact news so that you can place your trade safely. It’s very natural to get frustrated with too many variables but you do have the demo account. Stick to the practice platform until you are confident with the use of your edge and ZigZagColor indicator.

 

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