The Zig Zag indicator lowers the impact of random price fluctuations and is used to help identify price trends and changes in price trends.
The Zig Zag indicator lowers the impact of random price fluctuations and is used to identify price trends and changes in price trends. The indicator lowers noise levels, highlighting underlying trends higher and lower. The Zig Zag indicator works best in strongly trending markets.
The Zig Zag indicator plots points on a chart whenever prices reverse by a percentage greater than a pre-chosen variable. Straight lines are then drawn, connecting these points.
The indicator is used to help identify price trends. It eliminates random price fluctuations and attempts to show trend changes. Zig Zag lines only appear when there is a price movement between a swing high and a swing low that is greater than a specified percentage—often 5%. By filtering minor price movements, the indicator makes trends easier to spot in all time frames.
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