ZigZag NK Arrows Indicator
The ZigZag NK Arrows indicator is an ideal trend reversal detector. It is available for free download. It is an indispensable indicator for price action traders.
If your Forex trading strategy is based on price action and market flow concepts, identifying key swing levels is a skill you should have. Swing lows and highs are important points that help determine price direction and a pivot point, and this is where the ZigZag NK Arrows indicator comes to the rescue.
The zigzag arrow is very similar to the regular zigzag indicator. This helps traders objectively identify swing highs and swing lows. But unlike the regular zigzag indicator, which connects swing highs and swing lows to form a zigzag downtrend structure, the zigzag arrow shows arrows, as the name suggests. The blue up arrow shows the swing lows and the red down arrow shows the swing highs.
Therefore, it is quite easy to use even for beginner traders. In addition, you can use the indicator on any timeframe to trade any currency pair.
Using the ZigZag NK Arrows Indicator to Identify Uptrend and Downtrends
Now let’s get to the juicy part. How to use the indicator for profitable trading? A price action strategy defines an uptrend as a market with rising highs and swinging lows. Swing highs are higher than previous swing highs and swing lows are higher than previous swing lows.
On the other hand, a downtrend forms when swing highs are lower than the previous swing highs and swing lows are lower than the previous swing lows.
Once these points are identified, you can use other strategies and tools to determine the ideal market entry point. For example, you can wait for the price to form a bearish price pattern or chart at a swing high. Similarly, it is wise to wait for a bullish signal at the swing low to establish a confluence and enter the market at the perfect spot.
Signal to buy: wait for the indicator to show a Blue arrow and enter the trade at the close of the candles. Place a stop loss above the candle.
Sell signal: wait for the indicator to show a Magenta arrow and enter the trade at the close of the candle. Place a stop loss below the open of the candle.
Chart Example
The chart above shows the price action of the British Pound Sterling against the Australian Dollar. The swing high, indicated by the Magenta arrow, forms lower than the previous swing high, indicating a downtrend. The swing low indicated by the Blue arrow is followed by a lower swing low. This is a clear sign of a downtrend. You can place a stop loss a few pips above the swing high or below the swing low.
Conclusion
The ZigZag NK Arrows indicator helps to objectively determine swing highs and lows. You can then use other technical tools and strategies to determine the right time to enter the trade. The whole idea is to avoid closing trades due to minor pullbacks. This is one indicator that you will definitely need.
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