What is the Zig Zag indicator?
The Zig Zag indicator is a psychological indicator (Sentiment) that is essentially a zig-zag line connecting the top and the bottom. Because using a proven formula to eliminate redundant fluctuations so the zig-zag line is very clear.
This indicator is not effective in trading when used individually. The Zig Zag indicator is often used to support other indicators, besides that, it is difficult to have a common standard. However, it is still widely used to better see market trends.
The effect of Zig Zag indicator
Identify Elliott, Fibonacci
They can help you discover the Elliott wave, Fibonacci, from which to make better decisions.
See trends clearly through Zig Zag
The Zig Zag indicator helps you see the overall picture of the trend. Note that, it is okay to catch trends in the far future, but trends in the near future are not very effective.
Zig Zag indicator shows you many types of wave, you should use your experience about waves to make a decision.
No clear signal, but very good support
Although it does not give you a good signal to trade such as momentum indicators or oscillator indicators. But once you are familiar with the forms of the Zig Zag indicator, which can only be learned through much practice. If you like trade surfing as Scalping or Harmonic Pattern then it will support very well.
Zig Zag lines can be drawn by your own market feel without any general standards. Therefore, the Zig Zag indicator is very intuitive.
However, online trading platforms have provided you with tools to calculate the Zig-Zag road according to the general formula that can be customized. It is very convenient, but personally I still want to draw my own Zig Zag line.