The Channel ZigZag indicator for MT4 automatically identifies and plots a channel around the classic ZigZag MetaTrader indicator. The ZigZag line is a straight line, while the price movement is not necessarily a straight line and may fluctuate according to supply and demand. As a result, forex technical traders can use the channel to enter and exit the market accordingly.

The indicator plots lines and measures the pip value of each ZigZag movement. New and advanced traders can use this indicator with ease. The indicator works well in all intraday price charts as well as the daily, weekly and monthly price charts and is suitable for scalpers, short term and long term traders alike.

Channel ZigZag Indicator For MT4 Trading Signals

The above GBPUSD M30 candlestick price chart shows the Channel ZigZag indicator for MT4 in action. The indicator plots the ZigZag line as Gray and the ZigZag channels as orange. Forex traders can use the channel trading rules and the ZigZag trading rules for this indicator.

If the ZigZag line reverses and moves in the upward direction, it indicates a bullish market trend. So, traders can enter the market with a buy trade with a stop loss below the previous swing low. Similarly, a downward ZigZag line indicates a bearish price trend.

However, traders can use the ZigZag channel to identify the best entry points. In an upward ZigZag line, traders can wait for the price to move to the lower channel and enter with a better price. Similarly, in a downward ZigZag line and sell entry from the upper ZigZag channel line provides a much better entry price.

Conclusion

In summary, the channel ZigZag indicator is very helpful to forex traders using ZigZag for technical analysis of the price charts.