Zig Zag Indicator (ZIG)

The Zig Zag Indicator is a series of trendlines that connect significant tops and bottoms on a price chart. The Minimum Price Change parameter specifies the percentage that the price must move in order to form a new zig or zag leg. It can be used to identify potential chart patterns and Elliot Wave formations.

The Minimum Price Change setting of the Zig Zag and Zig Zag Oscillator indicators can be expressed in absolute dollars ($) in addition to percent (%)

Presentation

Zig Zag Example

Above is a 2-minute Chart of @ES# . The Zig Zag indicator overlays the bars, drawn as successive red and blue trendlines.

Keyboard Adjustment

The Zig Zag Minimum Percent Change value can be adjusted directly from the keyboard without having to open up the preferences window. Just select the indicator and then hit the up or down keys on your keyboard to adjust the value by 1. To adjust the value by a smaller increment of 0.1, hold down the shift key while pressing the up or down arrows on the keyboard.

ZigZag Prefs

  • Price -Price used as input for the calculations (Close, (High+ Low)/2, etc.)

  • Minimum Price Change -This is the mnimum distance price must move in order to confirm a new leg of the Zig Zag. Minimum Price Change can be specified in units of %, $, Bars, Ticks, or Fractals.  Perctange uses a percent of current price for the mimimum move.  The $ choice allows users to specify price or points for the minimum move.  Ticks is very similar to $ but specified in the number of tick increments that price must move instead of point move ($).  Fractals uses alternating x-bar fractals for the Zig Zag pivots (end points).  The Bars units requires the price to form an x-bar high or low in order for a new leg to be confirmed.  For example, if the last leg was down and we're looking for a new up leg on a 9-Bar Zig Zag, the high must make a higher high that previous 9 bars in order to confirm an up leg.

  • Draw Reference Lines At - This allows for the drawing of reference lines on each leg of the Zig Zag, at a user-specified % change level from the base of the leg.

  • Label With - the ability to label each leg of the endline.

ZigZagStudy_Ticks
This chart is documented in the Profiles On Indicators article. This chart profiles the significant moves identified by the Zig Zag indicator and produces data such as the number of moves and average...

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ZigZag (@ES#)
Zig Zag Indicator. This chart was uploaded by Investor/RT 14.1.12 showing symbol: @ES#.

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