Practical skills and parameter setting of Zigzag indicator in MT4
As a commonly used technical analysis tool for foreign exchange trading, the Zigzag indicator is not an indicator that comes with the MT4 platform. If users want to use it, they must download and install it by themselves. atDLSMIn foreign exchange and other trading environments, mastering this indicator can assist in the analysis of price movements. Here are some usage and parameter setting instructions for the Zigzag indicator.
Zigzag indicator description
The Zigzag indicator is a trend line that connects a series of price points. Its main purpose is to identify relatively high and low points in past prices and to show the trend direction of price fluctuations through the connection between these points.
Zigzag indicator parameter settings
In the process of identifying high and low points, the following three parameters are mainly involved: ExtDepth, ExtDeviation, and ExtBackstep.
The default expression in the program is: extern int ExtDepth = 12; extern int ExtDeviation = 5; extern int ExtBackstep = 3.
Zigzag indicator usage
1. The Zigzag indicator adjusts the last connection according to the latest price movement, which is also a problem mentioned by some users that includes future functions. Therefore, the last connection cannot be used as the final high or low point, and it is necessary to pay attention to its limitations when using it.
2. As a technical indicator, Zigzag is generated strictly according to the calculation results, but in the actual market, it sometimes appears relatively rigid and difficult to fully adapt to sudden trends. However, in most cases, it can accurately identify the wave pattern and make the overall trend clear at a glance.
3. With the help of the Zigzag indicator, horizontal lines and trend lines of recent highs and lows can be drawn, which is of great help in judging the market. When drawing trend lines, you can refer to the Zigzag indicator and manually adjust it with your own experience, the effect may be better.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.