Hey fellow traders,
Today, let's dive into the ins and outs of the Waverider Zigzag indicator for MetaTrader 4. This tool is a game-changer when it comes to identifying market peaks and troughs.
Understanding the Logic Behind Peaks and Bottoms
So, how does it work? It’s pretty straightforward:
- When the low of candle(i) is greater than the maximum of the Lips, Jaws, and Teeth, we identify a peak.
- Conversely, when the high of candle(i) is lower than the minimum of those same indicators, we spot a bottom.
Once we identify these key points, we can calculate the highest high and lowest low to draw the zigzag line on our charts.
Why Use the Waverider Zigzag?
This indicator is particularly effective for calculating Fibonacci levels, spotting harmonic patterns, and determining the overall trend direction. It’s a reliable companion in your trading toolkit!
Happy trading, everyone!
Comments 0