What is zigzag indicator?

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The Zigzag indicator is a series of trend lines connecting significant peaks and foundations at the price plot. Zigzag indicator is used to predict when a given security’s momentum is reversing. Zigzag indicator is used by traders to eliminate random price fluctuations and attempts to profit when the trend changes. The Zig Zag tool is often used in wave analysis to determine the positioning of the stock in the overall cycle. Minimum price change parameter determines the percentage for the price to move in order to form a new “Zig” or “Zag” line. This zigzag indicator eliminates those changes on the plot we analyze that are less than the given value. Therefore, the Zigzag reflects significant changes only.

Zigzag indicator for metatrader

ZigZag indicator is based on the chart “type.” Line and dot charts, which are based on the close, will show the ZigZag based on closing prices. High-Low-Close bars (HLC), Open-High-Low-Close (OHLC) bars and candlesticks, which show the period’s high-low range, will show the ZigZag indicator based on this high-low range. ZigZag indicator based on the high-low range is more likely to change course than a ZigZag based on the close because the high-low range will be much larger and produce bigger swings.

A trend following indicator that is used to predict when a given security’s momentum is reversing. The indicator is used by traders to eliminate random price fluctuations and attempts to profit when the trend changes. The Zig Zag tool is often used in wave analysis to determine the positioning of the stock in the overall cycle.

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