ZigZag Action Forex Trading Strategy For MT4
The ZigZag Action Forex Trading Strategy For MT4 has a combination of price action, EMA, and zigzag indicators. 25 and 50 EMA will be our preferred settings for the EMA as it can take price motion into count without any deviation or delay.
The zigzag indicator will be working as the retracement phase identifier. We all know trading becomes a lot more tough job as the users fail to find the exact entry point. For the price action, you have nothing to worry about. We won’t be using any fancy PA signal rather we will stick to the core concept of the pin bar.
25 and 50 are going to be support and resistance. The trend can be identified with these two bands by analyzing the position of the candles. Bars forming over 25 and 50 is the bullish trend and if it is below that level, it is a bearish trend. In most cases, the end phase of the retracement takes place when the zigzag hits the dynamic bands or the EMAs, Find our pin bar based on the nature of the trend near the EMAs.
The bullish pin bar must be spotted at the 25 or the 50 EMA to take the long trade. You can determine the SL by analyzing the low of the pin bar. Usually, the SL is placed 3 pips below the tail of the pin bar. Take profit is set at the resistance level. On the contrary, a short trade is executed with the bearish pin bar at the 25 or 50 EMA. SL is 3 pips above the rejection level and the take profit is at the nearest support.
Being an active user, the traders must analyze the price pattern precisely. It’s not like the pin bar is the only PA signal that can help us to execute the order. We can rely on the engulfing pattern, inside bar patterns while using this system. Once you start considering advanced PA pattern, it will be easier to take trades even at the complex price movement. Carefully asses the risk exposure when taking trades on major news. Saving your capital with this swing trading method requires a stable price movement. So, ignore any kind of setups when the average pips are beyond the normal range.
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Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
