Zig Zag Exit Indicator for MT4 – Identify Key Price Swings Easily

The Zig Zag Exit Indicator is a classic tool in technical analysis, widely used by Forex traders to filter out market noise and highlight significant price swings. Unlike oscillators, the ZigZag does not predict price movements but helps visualize trends, reversals, and support/resistance levels by connecting highs and lows based on defined parameters.

This article covers the MT4 version of the Zig Zag Exit Indicator, explains its settings, and provides practical tips on how to use it for Forex trading.

See also: Zig Zag History

How the Zig Zag Exit Indicator Works

The Zig Zag Exit Indicator works by plotting lines connecting local highs and lows that exceed a specified deviation. This simplifies the chart, removing minor fluctuations and allowing traders to focus on major price swings.

Key features of this MT4 Zig Zag Exit Indicator:

• Draws highs (Red) and lows (Blue) automatically.
• Adjustable parameters for depth, deviation, and backstep.
• Optional limit on the number of bars to calculate (ExtPeriod).

Indicator Parameters

How to Use the Zig Zag Exit Indicator

Identify Trend Direction:

• Connects significant highs and lows to show the trend visually.
• Upward ZigZag segments indicate bullish moves; downward segments indicate bearish moves.

Spot Reversal Points:

• Look for points where the ZigZag changes direction to anticipate potential reversals.
• Combine with support/resistance levels for more reliable signals.

Draw Chart Patterns:

• Useful for spotting double tops, double bottoms, head and shoulders, and other price patterns.

Filter Noise:

• Minor fluctuations are ignored, making it easier to focus on the major price swings.

Tips for Effective Trading

• Combine ZigZag with trend indicators like EMA or MACD to confirm signals.
• Use higher timeframes (H1, H4, D1) for more reliable swing points.
• Avoid using ZigZag alone for entry/exit; always validate with other indicators or price action.
• Adjust ExtDeviation according to market volatility; higher deviation filters out smaller swings.

How to Instal “Zig Zag Exit” Indicator for Metatrader 4

1. Open your Metatrader 4 platform.
2. Download and save the “Zig Zag Exit” indicator to your desktop or any other folder located on your local computer.
3. Choose “File” then “Open Data Folder” (Ctrl + Shift + D) on your Metatrader 4 platform.
4. Explore the following folder: MQL4 > Indicators.
5. Copy and paste the “Zig Zag Exit” indicator into this folder.
6. Restart Metatrader 4.
7. “Zig Zag Exit” indicators are stored by default in the custom indicator folder.
8. To access these indicators, go to Top Menu > Insert > Indicators > Custom.
9. In order to add a “Zig Zag Exit” indicator to any of your Metatrader 4 charts, you will need to select a forex chart with one mouse click, then go to Top Menu > Insert > Indicators > Custom > click the “Zig Zag Exit”.
10. Done!

See a complete guide How To Install Metatrader 4 Custom Indicators

Conclusion

The Zig Zag Exit Indicator is a simple yet powerful tool to visualize market swings and potential reversals. While it does not generate buy/sell signals on its own, it helps traders identify key points, confirm trends, and improve decision-making. Use it alongside other technical indicators and price action for best results.

Free Download Zig Zag Exit indicator for Metatrader 4