Extra indicators
ZigZag
Connects significant highs and lows with straight lines, hiding the small wiggles in between.
L’idée en termes simples
Charts are noisy. ZigZag only draws a new line when the price has reversed by more than a set percentage, so you see the main swings clearly. It is a tool for reading structure (higher highs, lower lows), not a signal.
Mode de calcul
It follows the price until it turns back by the deviation (for example 0.3%), at least "depth" candles after the previous turning point; then it marks the extreme and starts a new leg.
New swing when the price turns back from the running extreme by ≥ deviation %
and at least depth candles after the previous swing
The last leg moves with the price until it is confirmedComment l’utiliser
- Spot trend structure: rising swing highs and lows mean an uptrend.
- Draw Fibonacci and Elliott wave counts from the ZigZag points.
Tirer des conclusions
- The last line can still change as new prices arrive (it "repaints"): never treat it as a fixed signal.
Exemple
With a 0.5% deviation on EURUSD H1, ZigZag shows four clear swings in a week where the candles show dozens of small ups and downs.
Les prix des exemples sont donnés à titre d’illustration.
Points de vigilance
- Because the last leg repaints, back-tests that use ZigZag points can look far better than reality.
Un peu d’histoire
A classic chart tool included in most trading platforms.
Contenu éducatif uniquement. Aucun indicateur ni aucune figure ne prédit l’avenir, et rien ici ne constitue un conseil en investissement.