The Zig Zag indicator is a popular tool among technical traders, designed to filter out minor price fluctuations and highlight significant trends. By plotting lines only when price movements exceed a specified percentage threshold, the Zig Zag indicator helps traders identify key turning points, support and resistance levels, and overall market direction.
Trade On Pocket Option: http://pocketoptioncapital.com
This tool is especially useful for visualizing price swings and recognizing chart patterns such as head and shoulders, double tops, and Elliott Wave structures, allowing for more informed decision-making in trend-based strategies.
When combined with the Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, traders can refine their entries and exits. The RSI helps identify overbought or oversold conditions in the market, typically using levels of 70 and 30 as thresholds. For instance, if the Zig Zag indicator marks a swing high and the RSI is above 70, this confluence can signal a potential reversal or pullback. Conversely, a Zig Zag swing low accompanied by an RSI below 30 may indicate a possible buying opportunity as momentum could be shifting to the upside.
Using both indicators together allows traders to balance trend-following and mean-reversion strategies. While the Zig Zag provides a clean view of the overall price structure, the RSI offers insights into the underlying momentum, reducing the likelihood of false signals. Traders often wait for the Zig Zag to confirm a trend direction and then use RSI to time entries when the price retraces into an oversold or overbought zone. This combination can enhance trade accuracy, especially in volatile markets where isolated indicators might produce misleading signals.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
Intraday trading strategies, live day trading, live trading, quotex trading strategy, quotex trading strategy, binary options trading strategy, quotex trading app review, binary options, trading, quotex trading app, nifty prediction, binary trading, binary options trading, binary options trading strategy, day trading live, quotex, quotex strategy, pocket option, pocket option strategy, best binary options brokers, pocketoption strategy 2025, binary trading, binary options indicator, binary option, binary options trading, indicator mt4 binary options, best binary options brokers, copy trading, binary options trading, binary options broker, pocket option promo code, pocket option strategy, pocket option promo code 2025,
Trade On Pocket Option: http://pocketoptioncapital.com
This tool is especially useful for visualizing price swings and recognizing chart patterns such as head and shoulders, double tops, and Elliott Wave structures, allowing for more informed decision-making in trend-based strategies.
When combined with the Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, traders can refine their entries and exits. The RSI helps identify overbought or oversold conditions in the market, typically using levels of 70 and 30 as thresholds. For instance, if the Zig Zag indicator marks a swing high and the RSI is above 70, this confluence can signal a potential reversal or pullback. Conversely, a Zig Zag swing low accompanied by an RSI below 30 may indicate a possible buying opportunity as momentum could be shifting to the upside.
Using both indicators together allows traders to balance trend-following and mean-reversion strategies. While the Zig Zag provides a clean view of the overall price structure, the RSI offers insights into the underlying momentum, reducing the likelihood of false signals. Traders often wait for the Zig Zag to confirm a trend direction and then use RSI to time entries when the price retraces into an oversold or overbought zone. This combination can enhance trade accuracy, especially in volatile markets where isolated indicators might produce misleading signals.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
Intraday trading strategies, live day trading, live trading, quotex trading strategy, quotex trading strategy, binary options trading strategy, quotex trading app review, binary options, trading, quotex trading app, nifty prediction, binary trading, binary options trading, binary options trading strategy, day trading live, quotex, quotex strategy, pocket option, pocket option strategy, best binary options brokers, pocketoption strategy 2025, binary trading, binary options indicator, binary option, binary options trading, indicator mt4 binary options, best binary options brokers, copy trading, binary options trading, binary options broker, pocket option promo code, pocket option strategy, pocket option promo code 2025,
Category
📚
LearningTranscript
00:00I currently have $500.00 in my account and in this video we'll be using the zigzag indicator
00:08along with RSI let's get started first go to the indicators and select zigzag i'm using the default
00:14settings next go to the indicators again and select RSI i'll be using the default RSI setting
00:20of 14. i've already made videos explaining both the zigzag and RSI indicators so if you're new
00:27and haven't seen them make sure to watch those videos first now let's find our first trade on
00:33amazon otc there was an opportunity for a downside move i waited for a good entry point and then placed
00:38my first trade for $500 you'll notice the RSI line touched the 70 level and the price also touched the
00:45zigzag indicator level that's why i took the trade for a downside move the trade initially went in our
00:52favor but it briefly reversed let's see what happens only a few seconds left now and in the final
01:01second the candle dropped in our direction i won my first trade my balance is now $960 let's look for
01:09a new trade there was a setup on torncoin otca for another downside move i waited for confirmation
01:16the candle closed at the zigzag level and the RSI line touched 70 again based on that i placed a $960
01:24trade for the downside move and now just a few more seconds i want another trade now my balance is
01:34now $1843 next i found a setup on pulka dot otc for a downside move i entered with the full balance
01:44$1843 the entry lined up with the zigzag level and RSI was at 50 again a good confirmation for a short
01:55position and yes another win new balance $3538 let's look for a trade with this new balance
02:08on city group otc there was another downside opportunity i waited for a good entry and placed
02:14a $3538 trade the candle aligned with the zigzag level and RSI touched 70
02:26didn't start in a favor but the candle reversed and with just a few seconds left another winning trade
02:32now my balance is $6793 let's find one more Netflix otc there i was a setup for an upside move
02:42i entered with the full $6793 it's because of a price spike i entered slightly higher however the RSI was
02:51at 30 and price touched the zigzag level so i had strong confirmation for an upside move the candle
02:57closed green and the trade was going well just a few seconds to go and i won again my balance is now
03:08$13,043 okay i'll stop trading here for today i hope this video helped you understand how to use the
03:16zigzag indicator especially when combined with RSI it can give very reliable signals if you enjoyed the
03:22video please like subscribe and comment your thoughts below