Hi, this is Shaun Overton with ForexNews. A swing high is essentially the highest high among a set of bars.

Fractal Zig-Zag (No Repainting) - Free MT4 Indicator

Take this picture, for example. You can see that before the price shot off on a strong trend, there was a retracement down to this point. The ZigZag applies to the chart like any other MT4 indicator. ZigZag will be at the end of the list.

Drag and drop the file from the list onto your chart. Many a novice trader looks at this indicator and wonder if this is the holy grail. Before you get too excited, the ZigZag cannot predict the highs and lows in advance.

Nothing about this indicator makes predictions. In fact, this indicator repaints. Do you see this high here on the chart?

Metatrader ZigZag Indicators Gallery – Free Download | Yellow FX

Well, the ZigZag started drawing the high here. Everytime the market makes a new high, the ZigZag deletes its last drawing and replaces it with the higher high.

The power of this tool is that it consistently draws historical highs and lows fal stock options the same way.

Fibonacci traders can binary options vantage fx the historical moves zigzag indicator mt4 draw extension and retracement lines only between the points that the ZigZag identifies.

If any of those points differ, then of course the retracement and extension lines also differ. In fact, it might even be you, the same trader, that draws different Fibonacci lines on the same prices!

Zig Zag Indicator » MT4 Indicators MQ4 & EX4 » umisifuy.web.fc2.com

Trader 1 may argue that this point is the top because he prefers short term setups. Trader 2 is longer term, so he may feel that the swing high is really here.

Using a ZigZag line adds consistency to your trading, which is essential for removing mistakes and evaluating performance. If the line draws the same way on every occasion, then you can analyze entries on retracements to improve entry and exit points.

The starting point is to find ZigZag settings that match what you would draw as a discretionary trader. If you think these lines are too aggressive, you can change the settings by right clicking on the chart and choosing Indicators, then ZigZag. If you want something slower, that would require a bigger number.

Putting in a number like 25 makes the chart draw like this. Some of the lines that were on the chart earlier have disappeared. The action is more smooth, although there are also fewer swing highs and lows identified. Finding the right combination will depend on your experience as a discretionary trader. I hope you found this to be a useful introduction.