Strategy on ZigZag signals
This is a good trading strategy based on redrawing indicators. It would seem that it does not happen ... But you try it!
Trading strategy indicators
Non Lag Zigzag: Price 0, Length 100, PctFilter 2.0.
Zigzag Pointer: ExtDepth 100, ExtDeviation 75, ExtBackstep 15.
Good signal to buy: The arrow points up and the zigzag line is touched.
Good sell signal : The arrow points down and the zigzag line is touched.
Exiting a position is done in one of two cases:
1) There is a new rollback zigzag.
2) There is a signal to open in the opposite direction.
False signals strategy
Do not trade if one of the following events occurs:
- There is no arrow, but there is a ZigZag line;
- There is no zigzag line, but there is an arrow.
The use of multiple time ranges. The author of the strategy suggests using 3 charts for confirmation. You can limit yourself to the hourly range, but it is better to use the 4-hour time frame as well. When you see signals on all three charts, it is a very strong indicator of the trend direction.
Exit and Stop Losses
It all depends on the currency pairs. For example, if you trade on an hourly chart of GBP/JPY, it is recommended to use stop loss at least 75 pips. If you trade the same pair, on the 4-hour chart, you can use a stop loss of 200 pips. For exits, you can use either the next signal or a predetermined profit target. You can also use the MFI to assess the oversold/oversold nature of the pair.
Your profit to risk ratio should be at least 2:1. Never risk more money than you can win.
Комментарии ( 4 )
Downloaded 3 indicators. How do I use them?
До скачивания индикатора – полное описание, как пользоваться ими.
What currency pairs is this strategy for? What are the best timeframes to use? And can I use minute charts, if yes, which ones?
Yesterday there were blue arrows up on four timeframes: m15, H1, H4 and D1, and the price was going down, knocking out all the stops...