Forex trading strategy #44 (ZigZag and Fibonacci)

Indicators used: Fibonacci Retracement, ZigZag.

How does it work?

The signaling candle i.e the candle with the zigzag must close to open another one by its side.

For a short, drag the fibo from the low to the high of the signaling candle. Enter the trade at 100.0 of the fibo and exit at 161.8 no matter how small the pips may be.
Do not trade above this limit as there may be a reversal along the line.

Stop loss should be 5 pips above the signaling candle.

Take a look at the chat it speaks for itself. If you have any comment you can post it, I will make time to check on it.

Edward Revy,

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stoch-21,9,9 & fractal breakout for more filters u can use bollinger & parabolic,also visit for almost perfect free signals,after getting signal,chk with above atated indicators or use any of ur own strategy,i m earning almost cosistent profits by these means.happy trading

this is a good and accurate,must try it

pls what is the setting of the zigzig

Try something b4 jst posting..its a good indicator if u know how to interpret it better than most of your so called indicators

It's irrelevant if the zigzag repaints. For the order would have never filled, and when it repaints again, you have the opportunity to place the limit order again. I personally don't like the stop loss. You at least need a 1:1 ratio. Perhaps the stop should be at 38.2 rather than the length of the entire candle.

I used in 4h very well. I add a fractals because you can do the same strategy with the fractals. If you have a fractal in same way of the trend you can use the fibo tool in this candle with the most of the times do the target. If you have a fractal in the swing oposite the trend your target will be 1,27 of fibo.

Try this in 4H/1D.


very cool strategy

Yes, zig-zag can change even after several candles, but are we tacking about delayed orders, OK? If, for example, price reaches it's minimum, I've placed the order above marked candle (rather far above minimum) and price continues falling, I WILL LOSE NOTHING. The only situation one may loose, is a false retracement, but this is rare case and it is a matter of correct stop losses and many management.
Generally speaking, there is something in this strategy that may prove useful.

hy all i found in 15min eur/usd an idea that can work when the price cross the level of 0.50 fibonacci you buy/sell and you sell/buy on the level 1.414 good luck and more pips i'm sorry for my english

See, zigzag works better when you are able to determine the market's major trend.
1. Identify the market's major trend in all time frames starting from the highest to the lowest, noting every one of them.If the market is in an uptrend , it will be pointless to sell , evethough zigzag is indicating a downtrend.
2. Similaerly , if market is going down, all time frames indicates a downtrend, all your trades must be short trades.

I trade zig-zag alongside with fibonacci. and its' great! I'll soon be posting trades made with this strategy on my blog soon. For the meantime, you could follow my trades on another killer strategy I love: It's basically a pivot trading analysis which is aggressive for pips. It could make well over 200pips on a well trending market like EURUSD.
Go to my site:


The thing about this strategy is you're risking 2 for every 1 gain. Unless you have a 95% success rate with this, I don't think it's worth it. Got any back testing results for a year or two?

well actually it is a newbie strategey , and i think it is not accurate at all and sorry for my offensive comments and good luck mate.

Yes youre right thats what i wanted to say , its ok to use zig zag to see waves more clearly for drawing your Fibs , but actualy its not needed

Eh, ZigZag isn't useless. As long as you *only consider FIXED lines*, then it can do what you want it to.

For example, I'm currently coding a M15 swing strategy that uses previous ZigZag highs and lows as breakout points; I as well have found that the 161.8 level, drawn from the previous two fixed ZigZag points, is a helpful tool in gauging the profit target.

Now obviously, if we look at the ZigZag and don't realize that it repaints the current point, then it just shows our inability to use it properly. Recognize that & how it repaints, and you'll discover more uses for this indicator.

By the way -- for this strategy, I'd suggest using it on a lower time frame, and limiting it only to active hours of the trading session (i.e. when the 14ATR is over its 14EMA, Edward actually has a breakout strategy on this site that uses that indicator combo).

Just my two cents.


Well the direction of this start is right, but get rid of zig zag(except you still need visual help in seeing waves ) instead use Fibs (its voodoo math but so many use it that it has self fullfilling capacities ) plus Pivot Points, plus multi time frame psars, have a basic understanding of S/R lines and moneymanagement, lot lot of screentime and you will sooner or later be constantly profitabel.

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