XAU/USD Zig Zag indicator pro
Hello community, first time threading here.
I played around with this a bit on the xauusd 5M demo and I think it has potential.
Your supervision is very welcome
theory.
The rationale for this approach is to enter a trade when the higher highs and lower lows/support and resistance levels are broken during a trend and/or reversal.
The key is to know which higher highs/lower lows or support/resistance levels we should consider breaking before we consider placing a trade.
Indicator Pro has the potential to show these key areas displayed by the Zigzag indicator.
Once the NRP indicator pro sounds an alarm, HH or LL/SR levels are formed.
Once this key level is broken we will consider placing a trade.
Practice using 1:1 RR
sell
1) A sell arrow appears.
2) Lower lows formed in a zigzag pattern.
3) Enter on a breakout of the lower low formed by the indicator pro.
4) Place your stop loss at the last swing high shown by the Zigzag.
The bears continue to break below the lows.
and break out to higher lows
long head
Bulls continue higher, break out of highs
One major drawback of this approach, and the part that needs to be filtered, is that "often" (and I say this with a pinch of salt) before the stop loss is hit, the price will move up at least a few points in our favor before turning in our favor. The higher the time frame, the more points.
In this case, a trailing stop is an option.
The ZigZag indicator is known to be a repaint which should not be a problem in the larger scheme of things as price will first pull away and then hit key levels (theoretically), but on fast moves it can cause problems.
This reduced image is displayed every time the HH/LL or S/R levels are broken.
Note that the dotted line indicates that losing trades will usually go our way first and then reverse.
Indicator parameters
zigzag
5
41
3
Fibonacci settings for Tp and Sl are 1:1 RR
0-SL
1-entry
2-Tp
For those who don't know, adding %$ after the description will reveal Fibonacci targets.
Indicators Pro <br> The signal period is set to 40.
All parameters are still under investigation.
Indicator Pro does not redraw, but for some reason only displays a certain number of bars, so for backtesting the Strategy Tester should be used.
It would be very useful to have an alert when a key level is breached.
I'm creating this thread from mobile and am working on adding more attachments now. I will add indicators pro and more examples in my reply.
...Like I said, first time threading.
I played around with this a bit on the xauusd 5M demo and I think it has potential.
Your supervision is very welcome
theory.
The rationale for this approach is to enter a trade when the higher highs and lower lows/support and resistance levels are broken during a trend and/or reversal.
The key is to know which higher highs/lower lows or support/resistance levels we should consider breaking before we consider placing a trade.
Indicator Pro has the potential to show these key areas displayed by the Zigzag indicator.
Once the NRP indicator pro sounds an alarm, HH or LL/SR levels are formed.
Once this key level is broken we will consider placing a trade.
Practice using 1:1 RR
sell
1) A sell arrow appears.
2) Lower lows formed in a zigzag pattern.
3) Enter on a breakout of the lower low formed by the indicator pro.
4) Place your stop loss at the last swing high shown by the Zigzag.
and break out to higher lows
One major drawback of this approach, and the part that needs to be filtered, is that "often" (and I say this with a pinch of salt) before the stop loss is hit, the price will move up at least a few points in our favor before turning in our favor. The higher the time frame, the more points.
In this case, a trailing stop is an option.
The ZigZag indicator is known to be a repaint which should not be a problem in the larger scheme of things as price will first pull away and then hit key levels (theoretically), but on fast moves it can cause problems.
This reduced image is displayed every time the HH/LL or S/R levels are broken.
Note that the dotted line indicates that losing trades will usually go our way first and then reverse.
Indicator parameters
zigzag
5
41
3
Fibonacci settings for Tp and Sl are 1:1 RR
0-SL
1-entry
2-Tp
For those who don't know, adding %$ after the description will reveal Fibonacci targets.
Indicators Pro <br> The signal period is set to 40.
All parameters are still under investigation.
Indicator Pro does not redraw, but for some reason only displays a certain number of bars, so for backtesting the Strategy Tester should be used.
It would be very useful to have an alert when a key level is breached.
I'm creating this thread from mobile and am working on adding more attachments now. I will add indicators pro and more examples in my reply.
...Like I said, first time threading.
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