Valable ZigZag

The Valable ZigZag is a distinctive tool for Forex trading, leveraging the principles of the Elliott Wave Theory to optimize trading strategies. This review explores the unique features of this indicator and how it can be utilized to make informed trading decisions.

Valable ZigZag: An Overview

Unlike the classic ZigZag indicator, the Valable ZigZag showcases superior stability, reducing the risk of misleading traders with frequent direction changes. This stability is achieved by incorporating fractals in the wave construction of the indicator. Primarily, the Valable ZigZag operates as a trend indicator, setting the main directional path for trading. It can also function as an entry point indicator for market entry.

Application in Trade Optimization

In application, traders can install the Valable ZigZag on an H4 timeframe chart, where the direction of the last wave indicates the trend direction. After deciding on the trend trading direction, traders can switch to the H1 timeframe and enter the market at the breakdown of the last peak directed towards the chosen trend. This dual timeframe strategy facilitates trade optimization by providing clear market entry points aligned with the prevailing trend.

Advantages of Valable ZigZag

The Valable ZigZag indicator offers several unique advantages for traders. It is built on price reversal levels, changes direction only upon the break of the last local maximum/minimum, and sets the appropriate trading direction. Though not a complete trading system in itself, when used in conjunction with higher timeframe readings, it can significantly enhance trade profitability.

Complementing Trading Systems

For optimal results, the Valable ZigZag indicator is recommended for use as part of the Owl – Smart Levels trading system. This system integrates global trend trading principles with three simple indicators that have been rigorously tested. The Valable ZigZag indicator is versatile, with successful application in the Forex market, stock market, commodity markets, and indices. For instance, it has been effectively used to plot the full on the S&P500 index.

Settings of Valable ZigZag Indicator

The Valable ZigZag indicator is based on the Full Fractals indicator, and has two main settings and two additional ones in external variables: ‘Candles on the left’, ‘Candles on the right’, ‘Number of bars to calculate’, and ‘Show info panel’. These settings allow for customization of fractal construction and the number of bars to be calculated on the chart.

FAQs

1. What is the Elliott Wave Theory?
The Elliott Wave Theory is a model used for financial market analysis. It visualizes price movements in wave patterns, aiding traders in predicting market trends and identifying potential entry and exit points.

2. What are the main advantages of the Valable ZigZag indicator?
The Valable ZigZag indicator offers stability, accurate trend direction, and clear market entry points.

3. How does the Valable ZigZag indicator use fractals?
The Valable ZigZag indicator incorporates fractals in the construction of indicator waves, enhancing its stability and reducing direction changes.

Interested readers can watch independent testing of the Valable ZigZag on forexroboteasy.com, where they can also subscribe for updates on testing results. Share your experiences with the Valable ZigZag in the comments below to contribute to the community knowledge base.