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Zig zag breakout - FOREX strategy

This simple forex strategy uses Zigzag forex indicator to establish swings. In volatile forex market it is only matter of time, until one of the extremes of the swing is broken (Low or high). Statistically, strategy works extremely well in all GBP pairs and especially GBPJPY.

Rules of the forex strategy

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  • We draw Zig zag forex indicator on our chosen 1H chart with default settings (12,5,3). Indicator starts to mark swings as red lines.

  • Once the swing finishes (Line is drawn and closed, new line is beeing drawn) we proceed to place pending orders at top and at the bottom of closed line (zigzag swing). Zig zag line is closed once new zig zag line begins to be drawn.

Zig zag breakout - FOREX strategy

  • Orders are placed at the direction of the forex breakout. Pending sell order at the bottom. Pending buy order at the top of the swing.

  • We place stop losses for each order at the opposing end of the swing line (zig zag line). We use half of that distance to pre set our profit target for each order.

Zig zag breakout - FOREX strategy
  • Once the order gets triggered, we cancel pending order at opposing end of the swing.

We let the opened position develop on its own and meanwhile we can place another order according to our rules.

ABOUT US

THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com

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