Trend Following Forex Trading System Based on the Zig-Zag Math Trader

Math Trader and FTV Signal is a trend following trading system based on the MatTrader 7 Legacy volume/ spreads bars.

Time Frame: 15 min or higher.
Currency pairs: any.


Metatrader Indicators:
  • Zig Zagger (212);
  • Zig Zag V.2 (60 , 12).
  • MathTrader7 Legacy volume/spreads (13, 5, 3) mode leg volume;
  • MathTrader7 Legacy volume/spreads (13, 5, 3) mode leg volume per bars;
  • MathTrader7 Legacy volume/spreads (13, 5, 3) mode leg volume per spread; (MathTrader7 Legacy shows the volume of the bullish/bearish legs based on zig zag indicator.)
  • FVT Signal ( trend-momentum indicator as confirm indicator).
  • Trend Bars


Trading Rules of Math Trader & FTV Signal


Buy Rules
  • Buy Arrow blue confirmed by Red bars Fvt signal.
  • Math Trader 7 green
  • Trend Bars green


Sell Rules
  • Sell Arrow red confirmed by green bars of Fvt signal.
  • Math Trader 7 red
  • Trend Bars red


Exit position is discretionary depends by time frame, make profit with ratio 1:1 stop loss. Stop loss on the previous high/low swing.


How the Zig Zag Indicator Works


The Zig Zag indicator is easy to understand and apply. Price changes below a specific threshold, normally 10% or 20%, are removed from trendlines through a filtration process. Most trading software or online trading platforms have simple input fields that allow you to set the parameters of your own Zig Zag preferences.

Keep in mind that the higher you set the price change threshold, the less sensitive the indicator becomes. Too low of a spot results in an ineffective Zig Zag; not enough noise is removed. Too restrictive and you may miss profitable price trend data. Most default settings have the threshold between 8% and 15%.


Trading Forex With the Zig Zag

This tool is designed to be complementary and should not be the focal point of a forex trading strategy. It is most commonly used in conjunction with Fibonacci or Elliot Wave trading systems. Swing traders love the Zig Zag because it helps them analyze entries on retracements.

The Zig Zag indicator is there to apply consistency to trading signals. This should translate into a more consistent application of other trade strategies. Whatever trading strategy you use, keep in mind that the Zig Zag is a lagging indicator. It does not predict anything on its own. The forex market is very fast paced, so try to complement it with a system that offers leading signals.

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