ZigZag Trading Strategy — Step-by-Step Guide & Transcript

[00:01] your time frame to 30 seconds. Now, go to the indicator section, search for zigzag, and add it with the default settings. Don't touch anything. The default values are already well-suited for short-term price action. Once added,

[00:15] you'll see the zigzag lines connecting the recent highs and lows of price important to understand about this indicator. Zigzag doesn't predict where price is going next. It confirms what price has already done. That

[00:28] confirmation is exactly what makes it powerful for our entries. Now, let's talk about the buy setup. You're looking for two things happening together. First, the zigzag indicator is sitting below the candles, meaning price has

[00:40] and the indicator has locked in that point. Second, right after that confirmation, you see one or two strong bullish candles forming. Strong means a large, solid body closing near the top of the candle with no long upper wick.

[00:54] When both of those line up at the same time, that's your buy entry with a 1-minute expiry. Look at this example on the chart right here. Zigzag is below, two clean green candles follow. That's the setup, simple and clear. The sell

[01:08] setup is the exact mirror of that. This time, the zigzag indicator is positioned above the candles, meaning price has just rejected from a recent swing high. Then, one or two strong bearish candles form with solid bodies closing near the

[01:22] bottom. No long lower wicks. That's your sell signal, same 1-minute expiry. See this example here. Zigzag above, strong red candles follow right after. Perfect textbook setup. Now, let's talk about the two rules that will protect your

[01:37] account and make this strategy actually work long-term. Rule number one, never trade against a strong trend. If the market is aggressively pushing in one direction, you only take trades in that same direction. Fighting a strong trend

[01:52] back-to-back is the fastest way to drain your balance, and it's the mistake most beginners make repeatedly. Rule number two, stay out during major news events. High impact news creates sudden sharp spikes that the zigzag simply cannot

[02:05] handle cleanly. Before you start any trading session, check your economic calendar. If a big event is approaching, close your charts and wait it out. Patience here saves your account. Just these two filters alone will cut out the

[02:18] thing before we get to the live examples. Timing matters with this strategy. The European session and the New York session are where this setup performs best. Volume is high, price moves with purpose, and the zigzag

[02:31] reliable. During early morning low volume hours, you'll often see choppy sideways movement that generates false signals, movement that generates false signals, so avoid those windows entirely.