Zig Zag on Parabolic has been developed with a combination of Zig Zag indicator and Parabolic SAR for the illustration of the market status and the trade signals as well. This indicator has been built with simplicity of use and easy chart demonstration so that traders with any level of trading experience can apply it for regular trading activities.
Zig Zag on Parabolic is a short-term/intraday indicator and works best on M1 to H1 timeframe charts within the MT4 platform. Besides, you’ll be able to apply it to trade all kinds of forex currency pairs available around the financial market.
Zig Zag on Parabolic Overview
After the installation of the indicator at the MT4 terminal, your trading chart will appear like the following image:
Zig Zag on Parabolic Anatomy
Zig Zag on Parabolic uses Parabolic SAR for determining the possible direction of the current trend. Zig Zag shows you the length of the previous trend/momentums and also assists you to forecast the possible distance of the current price movement.
Parabolic appears below the price bar when the trend is bullish and appears above the price bar in case of the existence of the bearish trend. These levels can be treated as the stop-levels of your current trade which can be updated based on the changes of price action and the parabolic SAR. Moreover, you can add any kind of trend-following indicator/tool with Parabolic for improving your trading result and consistency.
Also Read: BB Alert Arrows Indicator
Zig Zag on Parabolic: Trading Rules
- Parabolic dots are plotted below the price bars
- Zig Zag pointing upwards
- Buy triggers when both above conditions are met
- Set stop loss below the low of the signaling bar
- Exit long/take profit whenever Parabolic appears above the price bar
- Parabolic dots are plotted above the price bars
Zig Zag pointing downwards
Sell triggers when both above conditions are met
Set stop loss above the high of the signaling bar
Exit short/take profit whenever Parabolic appears below the price bar