Zig Zag Indicator – FX Replay Guide

The Zig Zag Indicator in FX Replay visually connects key swing highs and lows to help traders filter noise, spot trend reversals, and backtest market structure logic with clean, simplified price movement lines.

How to Use It in FX Replay

Add the Indicator:

• Go to Indicators, search for “Zig Zag”, and apply it to your chart.

Set the Threshold:

• Choose a percentage move (e.g., 3%, 5%) or price value (e.g., 50 points) that defines a swing.
  • A smaller threshold catches more swings (good for scalping).
  • A larger threshold filters minor moves (ideal for swing/backtesting).

Analyze Structure:

• Use Zig Zag lines to:
  • Identify HH, HL, LH, LL patterns.
  • Spot trend direction based on slope.
  • Define structure for FVG zones, liquidity sweeps, or breaker blocks.

Trade Setup Ideas

• Swing Breakout:
  Enter after a break above the last Zig Zag high (with confirmation).
• Swing Reversal:
  Combine a Zig Zag high with bearish RSI divergence or volume exhaustion.
• Structure-Based Entry:
  Use Zig Zag to anchor trade bias within Silver Bullet time cycles or session opens.

Pair with FX Replay Tools

• Alligator or SMMA: Confirm trend direction.
• Fractals: Align Zig Zag turning points with fractal breaks.
• Volume Profile or VWAP: Validate reversal at key nodes/zones.

Pro Tip

In FX Replay, the Zig Zag indicator is powerful for:

• Visually tracking swing structure during backtests.
• Creating rule-based entries tied to breaks of Zig Zag pivots.
• Defining clean zones for risk placement or profit targets.

Use it to journal:

• “HH → HL structure confirmed → entered on VWAP reclaim”
• “LL to LH shift + volume divergence → early reversal setup”