# Forex Education

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Category: Education

## Presentation Description

There is an easy way to make money with forex zigzag tading strategy

## Presentation Transcript

### ZigZag Trading Strategy :

ZigZag Trading Strategy Presented by The forex secret

### ZigZag Trading Strategy, How to Make Money in Forex Fast:

ZigZag Trading Strategy, How to Make Money in Forex Fast There is an easy way to make money in Forex with our  ZigZag trading strategy .  The zigzag pattern will give you a more unobstructed view of the market price swings on different time frames. You can swing trade, day trade, and even to do scalping with the zigzag pattern. We also have training on the fractal trading strategy, if you are interested.

### What is the Zigzag Indicator?:

What is the Zigzag Indicator? The Zig Zag is a technical indicator that measures the swing highs and swing lows of a market. This will help you identify with better accuracy the market swing high and low points. The Zigzag tool is primarily used to filter out the market noise.

### Step #1: Set the ZigZag indicator settings at 20 for the Depth and 5% Deviation:

Step #1: Set the ZigZag indicator settings at 20 for the Depth and 5% Deviation First, we want to make sure the ZigZag tool will only show the more significant swing high and swing low points in the market. For this, we have to use at least 20 periods for the Depth and 5% deviation to accurately display the market swings.

### Step #2: Plot the Fibonacci Extension line once the first two swing waves are established:

Step #2: Plot the Fibonacci Extension line once the first two swing waves are established In order to plot the Fibonacci Extension line, we need three points of reference. As soon as the first two waves of the Zig Zag pattern are developed, we’re offered three swing levels. We’re going to use them to draw the Fibonacci extension levels. The reason why we use the Fib extension levels is to try to anticipate where the last swing wave of the Zig Zag pattern will form.

### Step #3: Wait for the third wave to terminate between 0.618 – 0.786 or between 1.0 – 1.272:

Step #3: Wait for the third wave to terminate between 0.618 – 0.786 or between 1.0 – 1.272 The reality is that market symmetry doesn’t happen often. The AB=CD pattern requires a lot of precision in order to have all the conditions for this pattern to be valid. Throughout our back testing software, we have found out that the third wave of the zigzag pattern ends between 0.618 – 0.786 or 1.0 – 1.272.

### Step #4: Wait until you have a candle with a higher low on the right and the left. The bar from the right needs to break above the bar on the left.:

Step #4: Wait until you have a candle with a higher low on the right and the left. The bar from the right needs to break above the bar on the left. The three bar pattern to spot a market swing point is quite easy. All you need to do is to wait until you have a candle that has a higher low on both the left and the right side of it. In order for this three bar pattern to be confirmed we also need the bar from the right to break above the high of the bar from the left.

### Step #5: Zigzag Trading Strategy: Buy at the close of the three bar pattern:

Step #5: Zigzag Trading Strategy: Buy at the close of the three bar pattern After the three bar pattern is completed, we don’t want to lose any more time, and we go buy at the market.

### Step #6: Hide your protective Stop Loss below the three bar pattern:

Step #6: Hide your protective Stop Loss below the three bar pattern The stop loss is going to go below the three bar pattern. Your stop loss may be a little bit bigger depending on the time frame you’re trading. You want to make sure that the three bar pattern where your stop loss goes maintains at least a 2% risk. You don’t want to risk more than 2% of your account in any given trade.

### Step #7: Take profit equal 2 or 3 times more the Stop Loss.:

Step #7: Take profit equal 2 or 3 times more the Stop Loss. The classical ABCD pattern essentially keeps you at a 1:1 risk reward ratio. Also, a lot of the times with the ABCD pattern, you’ll see it pretty frequently that those targets areas are front runned . However, when you trade with the Zig Zag indicator, you’re able to capture two or even three times more the risk taken.

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