Senin, 27 April 2015

Zig zag with MA indicator strategy

 Zig Zag
In the forex trading, you can combine the zigzag indicator by indicator   moving average   to get a profit in trading. It is recommended that you use MetaTrader to display the indicator.
Here is a guide to setting the zig zag indicators and moving averages.

1. Open your metatrader.
2. Make sure you have an active metatrader and online.
3. Open the Daily timeframe (D1)
4. For setting Zigzag: open menu insert, indicators, custom, and select zig zag.

Because we did take the default of MetaTrader, then we just click ok. If you want to change the color and line thickness are also allowed, please click Colors.

Zig Zag shows the trend of past performance and only the most important change. This indicator filter out all changes less than a certain amount. Zig Zag can help you see changes by highlighting the most important reversal. In the last segment in the Zig Zag are subject to change based on changes in the basic plot.

Without moving averages or other trend indicator, do not try to trade only with zig zag.




Parameter_Zig_Zag

5. For setting Moving Average: open the Insert menu, indicators, trends, and select Moving Average. Select period: 2, and then click OK.

Repeat the process, to get moving average period 4, distinguish the color of the moving average 2.
Again, repeat the process for displaying the moving average indicator 30.

Parameter_Moving_Average

Looks merger zig zag indicators and moving averages are as follows:
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Testimonials for the two indicators are as follows:
If Zig Zag already connecting the prices from top to bottom or vice versa then there is a change in the trend if the moving average is 2 already crossing / passing moving average 4. If the moving average 2 cross moving average 4 from the bottom up, and had no connections zig zag, then you can open Buy.
 
Conversely, if the moving average 2 is a cross moving average 4 from top to bottom then you can order Sell, especially zig zag already made ​​the connection.
If the moving average 2 is a cross moving average of 4 and in a few days later already moving average cross 30 there will be a trend of increase or decrease in price is quite large. Target in 1 day by using this indicator is 20-100 points.

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