IntraDay Forex Trading Training about ZigZag and TrendLines trading system. How To Trade Forex Easily With ZigZag and TrendLines. ZigZag and TrendLines Channel is a trading system trend-momentum but the direction of the market is determined by price action of the channel.
It may seem like a complex system but really simple. You make money with this system.
Best Time frame : 15 min or higher.
ZigZag – TrendLines Channel Trading Rules
DEFINITION of ‘Zig Zag Indicator’ – A trend following indicator that is used to predict when a given security’s momentum is reversing. The indicator is used by traders to eliminate random price fluctuations and attempts to profit when the trend changes.
The Zig Zag tool is often used in wave analysis to determine the positioning of the stock or currency pair in the overall cycle.
Like many trend following indicators, the disadvantage is that the result is based off past price history and doesn’t change direction until a certain move occurs. Given the lag, many traders will want to use the Zig Zag indicator to confirm the direction of the trend rather than timing an entry/exit.
- TrandLines Channel uptrend
- Gioteen-Norm indicator upward and above 0 level
- RSI X2 Alarm upward and above 50 level
- Non Lag MA upward and blue color
- TrandLines Channel downtrend
- Gioteen-Norm indicator downward and below 0 level
- RSI X2 Alarm downward and below 50 level
- Non Lag MA downward and yellow color
ZigZag Indicator Note:
The Zig Zag indicator operates as a filter for directional changes in price movements.
Technical analysts and forex traders apply the Zig Zag filter to remove unnecessary noise from the price chart; the goal is to focus on the important trends, not insignificant fluctuations.
This indicator is less ambitious than many other technical tools and should never act as a trading system on its own. Instead, the Zig Zag indicator is best used to highlight important patterns and confirm possible trend reversals.