Foreign Exchange Programs – Zig Zag With Support-Resistance Automated Forex Trading Indicator

Forex ZigZag SR Trading System – Zig Zag Trading With Automated Support-Resistance Indicator. Zig zag with support and resistance is a simple idea for trading with price action based on support and resistanza level with dynamic zig zag. This trading idea can be improved but it seems effective.

 

ZigZag Indicator

The zig zag indicator follows the trend while reducing noise in a stock or the market. Traders can use it to assist in holding winning positions and not closing positions due to random price changes. The indicator can also be used to identify shifts in momentum.

The default value for the zig zag indicator is usually a 5% deviation with a depth of 10. The deviation is just the difference between a price retracement from a swing high to a swing low, or vice versa.

Traders do not use this indicator to trade actively, because it is based on previous prices. Instead, traders use it to evaluate trend in a stock.

 

Determining a Market’s Condition (Support Resistance)

We’ve all heard it since we were young: BUY low, and SELL high.

If only matters were that simple.

What constitutes ‘high’ and what constitutes ‘low?’ After all, these are very relative matters, and low in a market today might be sky-high a week from now.

This is where SUPPORT and RESISTANCE come into play, and this is why finding strong, confluent levels can be so beneficial.

Think about why support or resistance may come into a market: The only real reason is due to an influx of buyers or sellers at a particular price level.

 

Forex ZigZag SR Trading Rules

 
Zig zag with support and resistance is a simple idea for trading with price action based on support and resistanza level with dynamic zig zag. This trading idea can be improved but it seems effective.

• Bet Time frame : 15min or higher.
• Financial markets : any.

Trading Rules Zig Zag ma with Support and Resistance

General rules:

• Price below significant resistance ONLY SELL.
• Price above significant support ONLY BUY.

What’is a support or a significant resistance?

is a price level, which in the past has generated a reaction.

 

BUY Rules

• price above support verified zone.
• Momentum line above 100 level.
• TMA Slope green.

SELL Rules

• price below resistance verified zone.
• Momentum line below 100 level.
• TMA Slope red.

 

EXIT Position

• profit target ratio 1.5 stop loss.
• Initial stop loss on the previous swing.

ZigZag SR Trading Note:

• Price action will also help traders see support and resistance in trending markets and ranging markets as well.
• In trending markets, prices will generally make ‘higher-highs’ and ‘higher-lows,’ or ‘lower-lows’ and ‘lower-highs,’ while ranging markets will generally display more stable levels of support and resistance.