Zigzag
ZigZag indicator - number of trend lines that connect significant tops and bottoms on the chart. This parameter specifies the minimum price change percentage by which the price must move to form a new "zig" or "Zag" line. This indicator eliminates changes in the analyzed graph, whose magnitude is less than the specified. Thus, the zigzag reflect only major changes.ZigZag is used mainly for ease of reading charts, since it shows only the most significant changes and reversals. Also, it can be used to identify Elliott Wave and various figures on the chart.Figure Zigag indicator that responds to 10% of the price change
Zigzag
It is important to understand that the last segment indicator may vary depending on changes in the analyzed data. This is one of the few indicators, which change in the price of paper can cause a change in the previous value. This ability to adjust their values to the following price changes makes Zigzag excellent tool for the analysis has occurred price changes. Therefore, you should try to create a trading system based on the Zigzag he is better suited for the analysis of historical data than for prediction.