Understanding the 'Three Indians' Pattern in MetaTrader 4

Let's dive into the 'Three Indians' pattern, a fascinating indicator based on the ZigZag tool.

About the System:

While I won't go into a detailed description of the system here—it's quite easy to find online—I do want to highlight the importance of market context. The term 'Three Indians' is a direct translation from Russian; if you know a different name in English, feel free to drop it in the comments! Just a quick reminder: this pattern should always be viewed in relation to the current market situation. It’s not a standalone trading signal.

Two Main Trading Approaches:

Trend Trading: This is the safer approach, where the pattern serves as a signal for the continuation of an established trend after a correction. Check out the chart below for a visual representation:

Counter-Trend Trading: This method is riskier and suggests a significant trend reversal. In this case, the waves of the pattern should be noticeably larger compared to the trend or its last wave:

Options:

The beginnings and middles of the lines align with the first and second prospective 'Indians' respectively.

Here are some settings you might find useful:

extern int ExtDepth=10; // ZigZag options
extern int ExtDeviation=5;
extern int ExtBackstep=3;
extern double K_MinWave=0.6; // Minimum size of a wave from the 1st Indian relative to the 2nd, to filter out small waves
extern int Depth=3; // Depth of search for the 1st Indian, accounting for the filter, but no more than 10!

And don’t forget to customize your line history, colors, and thickness!

Final Thoughts:

Understanding the 'Three Indians' pattern can enhance your trading strategy, whether you’re riding the trend or looking to catch reversals. Remember, always keep an eye on market conditions!

Understanding the 'Three Indians' Pattern in MetaTrader 4

Options:

Related Posts