ZigZag Fibo V2

Indicator Review: ZigZag Fibo v2 for MetaTrader 4

An Effective Combination of ZigZag Logic and Fibonacci Levels for All Traders

The ZigZag Fibo v2 is a custom indicator for MetaTrader 4 that intelligently blends two of the most popular tools in technical analysis: the ZigZag indicator and Fibonacci retracement levels. Designed for traders of all experience levels, this indicator aims to simplify the process of identifying meaningful price swings and key support/resistance zones.

What Does ZigZag Fibo v2 Do?

At its core, this indicator first identifies significant market highs and lows using a ZigZag algorithm. These turning points are then used as the basis for automatically drawing Fibonacci retracement levels, offering traders a quick visual guide to potential reversal or continuation zones.

Rather than manually drawing Fibs over swing highs and lows, ZigZag Fibo v2 handles it all for you — dynamically updating as the market evolves.

Key Inputs and Customization

The indicator comes with several adjustable parameters, allowing you to fine-tune its sensitivity and appearance:

• ExtDepth (default: 12)
  Defines the minimum number of bars between ZigZag points. A higher value makes the ZigZag less sensitive to minor price moves.
• ExtDeviation (default: 5)
  Sets the minimum price difference (in points) to qualify as a swing high or low.
• ExtBackstep (default: 3)
  Determines how many bars back the algorithm checks to confirm a swing point.
• FiboColor (default: Brown)
  Lets you choose the color of the Fibonacci lines for better chart visibility.
• FiboStyle (default: STYLE_DOT)
  Choose the line style (solid, dotted, dashed, etc.) to suit your visual preferences.
• FiboSize (default: 1)
  Adjusts the thickness of the Fibonacci lines.

How It Works Behind the Scenes

1. ZigZag Logic: The indicator scans price data using your Depth, Deviation, and Backstep settings to locate key swing points.
2. Automatic Fibonacci Drawing: Once two consecutive ZigZag points are confirmed (a swing low and a swing high, or vice versa), the indicator draws a Fibonacci retracement grid from one point to the other.
3. Dynamic Update: As new bars form and the market structure changes, the Fibonacci levels update accordingly, always reflecting the most recent swing.

Read also: Best Forex Indicators for Swing Trading

Practical Use Cases

• Trend Reversals: When price retraces to a Fibonacci level after a swing, it could signal a potential reversal or entry opportunity.
• Support/Resistance Confirmation: Combine these levels with candlestick patterns or volume indicators to validate entry points.
• Trade Planning: Use Fibo levels to set realistic targets and stop losses based on historical price reactions.

see also: Daily Breakout MT4 Indicator

Tips for Traders

• This indicator shines in trending markets, where clear swing points emerge.
• For ranging markets, consider using a higher ExtDepth to avoid noise.
• Combine with oscillators like RSI or MACD for additional confirmation.

How to Instal “ZigZag Fibo V2” Indicator for Metatrader 4

1. Open your Metatrader 4 platform.
2. Download and save the “ZigZag Fibo V2” 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 “ZigZag Fibo V2” indicator into this folder.
6. Restart Metatrader 4.
7. “ZigZag Fibo V2” 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 “ZigZag Fibo V2” 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 “ZigZag Fibo V2”.
10. Done!

See a complete guide How To Install Metatrader 4 Custom Indicators

Final Thoughts

ZigZag Fibo v2 provides a clean, automated approach to integrating Fibonacci analysis into your trading. Whether you’re a beginner learning about price structure or an experienced trader looking for a faster workflow, this indicator is a solid addition to your toolkit. Its combination of visual clarity and flexibility makes it suitable across a wide range of trading strategies.

Free Download ZigZag Fibo V2 indicator for Metatrader 4