ZigZag Fibonacci Forex Trading Strategy For MT4
The ZigZag Fibonacci Forex Trading Strategy For MT4 is a powerful trending trading system. You don’t have to set up the zigzag and Fibonacci tool in the platform since the ex4 files of this strategy will take care of the need. But the traders must carefully select the time frame since their success rate heavily depends on it.
If the traders rely on the lower time frame the zigzag tool will find the minor swing highs and lows. So, the traders have to trade the minor levels. The preferred time frame for this indicator is 4H and above time frame. Let’s learn to execute the short and long trade with this powerful trading method.
The long trades are taken based on two important lines. Instead of taking the trades at all the retracement levels, you have to wait for the price to test the 50% or the 61.8% retracement level. Set pending buy orders at these two levels and the stops will be placed below the 61.8% retracement zone. If the traders are executed on these two levels, you have to take a 1% risk in each trade. But those who have PA analytical skills can look for the PA signals and place the trades with low risk at the important levels.
The short trades are taken the retracement levels are analyzed from the swing high to low. In most cases, the traders have to look for the bearish rejection of the 50% or the 61.8% retracement level. The stop will be set above the 61.8% retracement and the traders need to be careful about the volume. If two trades are opened based on this system, the overall risk exposure should not exceed 2%.
This strategy is a powerful way to ride the trend. But the investors should be careful about the time chart and news factors. Never think the trend will not reverse. If the trade breaks the 61.8% retracement level, consider it a sign of the trend reversal. Wait for the new signals or try to analyze another asset.
Download the complete system description and the files here: