ATR ZigZag with BBands Pro
- Indicators
- Version: 1.2
- Activations: 5
ATR ZigZag with BBands Pro is a professional indicator for MetaTrader 5 that combines ATR ZigZag (trend line identification based on volatility), Bollinger Bands (dynamic support/resistance levels) and Pips labels (visual display of movement size in points). The indicator automatically detects market reversals, displaying the last 5 confirmed movements with their size.
Entry Signals
BUY:
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Price reaches the LOWER Bollinger Band (red label at bottom)
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Reversal occurs upward (TROUGH)
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GREEN label appears ABOVE with a + sign
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Entry: on breakout of the previous peak level
SELL:
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Price reaches the UPPER Bollinger Band (green label at top)
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Reversal occurs downward (PEAK)
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RED label appears BELOW with a - sign
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Entry: on breakout of the previous bottom level
Stop Loss Settings
By ATR (recommended):
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SL = ATR × 1.5 (parameter AtrMultiplier=1.5 )
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For aggressive trading: ATR × 1.0
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For conservative trading: ATR × 2.0
By ZigZag Extremum:
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BUY: SL at the last minimum level (TROUGH)
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SELL: SL at the last maximum level (PEAK)
By Bollinger Band:
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BUY: SL 10-20 pips BELOW the lower band
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SELL: SL 10-20 pips ABOVE the upper band
Take Profit
Risk-Reward Ratio (R:R):
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Minimum: 1:2
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Optimal: 1:3
By Opposite Bollinger Band:
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BUY: TP at the upper band
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SELL: TP at the lower band
By Previous Extremum:
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BUY: TP at the previous peak level
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SELL: TP at the previous bottom level
Trailing Stop:
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Move SL by ATR × 1.5 behind the price
Recommended Settings
| Parameter | Value | Description |
|---|---|---|
| AtrMultiplier | 1.5 | ZigZag sensitivity |
| AtrPeriod | 50 | ATR period |
| MaxPeriod | 10 | Max time before trend change |
| MinPeriod | 3 | Min time between reversals |
| BbMultiplier | 2.0 | Bollinger Bands deviation |
| RealTimeMode | true | Display current movement |
Markets and Currency Pairs
Best Markets: Forex, Futures, Cryptocurrencies (BTC, ETH), High-volatility stocks
Best Pairs:
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★★★★★ EURUSD, GBPUSD, USDJPY
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★★★★☆ EURGBP, EURJPY, GBPJPY
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★★★☆☆ USDTRY, USDZAR (use with caution)
Timeframes:
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Scalping: M1, M5
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Short-term: M15, M30 (recommended)
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Medium-term: H1, H4 (optimal)
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Long-term: D1, W1
Pros and Cons
Advantages:
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Objective signals without subjective interpretation
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Noise filtering through ATR
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Visual display of movement size in pips
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Works on all timeframes
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Dynamic BB levels adapt to volatility
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Information panel with data
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Anti-flickering protection
Disadvantages:
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Signal lag
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False signals in sideways (flat) markets
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Requires understanding of volatility
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Few signals during low volatility periods
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Possible re-tests of BB levels without reversal
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Rare signals on D1 timeframe
Important Warnings
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Never trade against the overall trend
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Use additional filters (MA, MACD)
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Consider news events (high volatility = false signals)
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Risk per trade should not exceed 1-2% of deposit
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Test on demo account before live trading
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Combine with other tools for confirmation
Example Strategy
Entry:
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Wait for price to touch the Bollinger Band
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Get reversal confirmation from ZigZag
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Wait for candle to close in the reversal direction
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Enter at the opening of the next candle
Conclusion
ATR ZigZag with BBands Pro is a powerful tool for professional trading, providing clear signals based on volatility. The key parameter BbMultiplier=2.0 means that Bollinger Bands are constructed at a distance of 2 standard deviations from the middle line, covering approximately 95% of price movements under normal conditions. This is the optimal value for most currency pairs and timeframes.
The indicator is particularly effective in trending markets with proper risk management. It is recommended to use it together with trend indicators for signal filtering.
