How to Achieve a 95% Success Rate with Zigzag and SMA

Trading in OTC (Over-The-Counter) markets can be highly profitable with the right strategy. One powerful approach combines the Zigzag indicator and a Simple Moving Average (SMA) to capture trending markets effectively. This guide will show you how to set up and use this method to achieve a 95% success rate on Pocket Option, focusing on risk management and maximizing returns.

Why Use the Zigzag and Moving Average Combo?

The Zigzag indicator filters out minor price fluctuations, highlighting significant trends and reversals. When paired with the SMA, it creates a strong foundation for predicting market direction changes. This combination helps traders:

✔ Identify high-probability entry points
✔ Reduce false signals
✔ Improve trade accuracy

Strategy Setup for OTC Markets

Chart Settings

1. Candlestick Type:

   • Heiken Ashi (for smoother trend visualization)

2. Time Frame:

   • 5-second candles

   • 15-second trade duration

Step-by-Step Trading Guide

1. Identify the Trend

• Watch for Zigzag points signaling an upward or downward trend.

• The indicator’s stops confirm when a reversal is likely.

2. Confirm with SMA Crossings

• If the price crosses above the SMA (37) and Zigzag points upward, consider a BUY trade.

• If the price crosses below the SMA (37) and Zigzag points downward, consider a SELL trade.

3. Use Heiken Ashi Candles

• These candles smooth out noise, helping confirm the trend direction.

4. Trade Only OTC Currency Pairs

• Choose pairs with at least 85% ROI (e.g., EUR/USD-OTC, GBP/USD-OTC).

• Avoid standard pairs that may auto-adjust duration (e.g., switching from 15 seconds to 1 minute).

5. Set Trade Duration to 15 Seconds

• This aligns with the quick signals from the indicators.