What is Zig Zag?
ZigZag is an indicator used to analyze the movement of an asset’s price.
It does not forecast the future behavior of the price. ZigZag shows how the price has changed in the past – the direction of trends and their reversal points.
Visually, the indicator appears as an unbroken line similar to a zigzag, which is where the name comes from.
We recommend using the indicator’s standard settings: a depth of 10 and 5% deviation.
The color and thickness of the line can be changed for ease of analysis.
How to use ZigZag?
ZigZag doesn’t give signals for opening trades, so don’t use it as a stand-alone indicator.
ZigZag is only used in combination with other indicators.
It removes market noise, greatly simplifying analysis of the chart of an asset.