Overview of the Zigzag Fibo Indicator
The Zigzag Fibo indicator for MT4 combines the ZigZag tool with Fibonacci retracement levels to help identify potential support and resistance zones based on recent swing highs and lows. By overlaying Fibonacci levels on the latest ZigZag wave, it gives traders a clear visual reference for potential price reactions.
This indicator draws both dynamic and static Fibonacci lines. Dynamic lines update with each new ZigZag leg, while static lines remain fixed until a new wave is formed, providing a historical reference.
How to Use It in Practice
In trading, you can use the Zigzag Fibo indicator to:
- Identify retracement levels on recent swing highs and lows.
- Use Fibonacci levels (like 38.2%, 50%, and 61.8%) as entry or exit points.
- Spot potential reversal zones where price may react.
- Combine with other indicators for confluence-based trading strategies.
The dual display of dynamic and static Fibos helps in tracking both real-time and past price action, making it useful for both reactive and predictive setups.
Parameter Explanations
ExtDepth
Controls how far back the ZigZag algorithm looks for significant highs and lows. Higher values filter out smaller swings.
ExtDeviation
Defines the minimum price deviation (in points) required to form a new swing. Helps avoid false signals in small price movements.
ExtBackstep
Specifies the minimum number of bars between consecutive ZigZag points. Prevents clustering of ZigZag turns.
DynamicFibo display flag
Enables or disables the display of the dynamic Fibonacci retracement levels.
DynamicFibo color
Sets the line color for the dynamic Fibonacci levels.
DynamicFibo style
Defines the line style (e.g., dashed, dotted) for the dynamic Fibonacci levels.
DynamicFibo line width
Sets the line thickness for dynamic Fibonacci levels.
DynamicFibo ray
Specifies whether dynamic Fibonacci lines extend indefinitely (ray) or stop at a fixed point.
StaticFibo display flag
Enables or disables the display of the static Fibonacci retracement levels.
StaticFibo color
Sets the line color for static Fibonacci levels.
StaticFibo style
Defines the line style for static Fibonacci levels.
StaticFibo line width
Sets the line thickness for static Fibonacci levels.
StaticFibo ray
Specifies whether static Fibonacci lines extend indefinitely or not.
