ZigZag Indicator for MT4 is used to determine important reversal swings in price chart.
Indicator will filter out any change that is less then a certain amount or percentage, leaving only the significant wave behind. Elliott Wave analysis usually uses ZigZag analysis to determine the wave count. ZigZag Indicator will filter out smaller price movements. This will give you a chance to see the forest instead of trees which is usually a big help to see the “big” picture.
ZigZag Indicator can be used together with the Fibonacci retracement Indicator to even have a grater control of the overview. ZigZag has a way of highlighting the most important movements and will allow you to ignore the noise. Remember look for the forest and not for the trees and your orders will improve dramatically with each trade!
This are the available settings for ZigZag Indicator:
- ExtDepth: how often to look for lower Highs or higher Lows (setting it lower and you will have more ZigZags and they will be shorter)
- ExtDeviation: checks if the current High is higher than the last High in this number of bars
- ExtBackstep: It means that indicator will check everything from the previous bar up to ExtBackstep bar
How to install ZigZag Indicator in MetaTrader 4 / MT4:
- Download/Copy/Save the MQ4/EX4 file into your C:\Program Files\MetaTrader 4\experts\indicators folder (or change the folder to your installation sometimes forex broker name)
- Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
- On the left hand side, look for the “Navigator” window and under the “Common” tab, look into the “Custom Indicators” section
- Locate the indicator which you have just downloaded into the folder stated in Step 1
- Drag (Click and drag) the indicator onto the chart
- Choose your settings and click OK.
- TADA and your done!