Zig zag is a popular technical analysis tool used in forex trading. It helps traders identify trend reversals and chart patterns by removing the noise from the price movements. In this article, we will discuss how to code zig zag using MQL4 in forex.
MQL4 (MetaQuotes Language 4) is a programming language designed for developing trading strategies and indicators for the MetaTrader 4 platform. It is based on the C++ programming language and is easy to learn for those with programming experience.
Before we dive into the coding process, let’s first understand what zig zag is and how it works.
What is Zig Zag?
Zig zag is a technical indicator that connects swing highs and lows in the price chart. It helps traders identify the direction of the trend and potential trend reversals. Zig zag is a non-linear charting tool that removes the noise from the price movements and provides a clearer view of the market.
The zig zag indicator consists of two lines: the zig line and the zag line. The zig line connects the swing highs, and the zag line connects the swing lows. The indicator is plotted on the chart using the highest high and the lowest low within a specified period.
How to Code Zig Zag in MQL4?
To code zig zag in MQL4, we need to follow the below steps:
Step 1: Create a new MQL4 script
Open the MetaEditor in the MetaTrader 4 platform and create a new MQL4 script. Name the script as per your preference.
Step 2: Define the input parameters
Define the input parameters for the zig zag indicator. You can set the parameters for the minimum percentage change required for a swing high or low, the depth of the swing high or low, and the minimum number of bars required to confirm a swing high or low.
Step 3: Define the variables
Define the variables required to calculate the zig zag indicator. The variables include the highest high, the lowest low, the current high, the current low, and the previous high and low.
Step 4: Calculate the zig zag indicator
Calculate the zig zag indicator using the defined variables and input parameters. The zig zag indicator is calculated by connecting the swing highs and lows using the highest high and lowest low within a specified period.
Step 5: Plot the zig zag indicator
Plot the zig zag indicator on the price chart using the Plot function. The zig zag indicator is plotted as a line connecting the swing highs and lows.
Step 6: Test the zig zag indicator
Test the zig zag indicator on historical data to ensure it is working correctly. You can also tweak the input parameters as per your preference and test the indicator again.
Conclusion
Zig zag is a useful technical indicator that helps traders identify trend reversals and chart patterns. Coding zig zag in MQL4 is a simple process that requires defining input parameters, variables, and calculating and plotting the zig zag indicator. Traders can use the zig zag indicator in conjunction with other technical indicators and trading strategies to make informed trading decisions.
