If we compare currency market pair with the forest then a lot of the Zigzag indicator as the helicopter. It is not out of the woods on the way into the already quoted gives way to say to the whole forest.The speed of price changes are small, like trees, but large changes in the movement to understand the true sense of the trend.
The zigzag indicator in accordance with these small changes, big changes are ignored the trend movements. The overall situation of the market is clear in front of you.
Following the trend of the moment is an indicator of price changes from the speed indicator signals to the Zigzag. Irregular price changes by eliminating the actual speed of the changes to bring focus to the use of these indicators.
How to use zigzag indicator?
Other indicators that cannot be used as Zigzag indicator. It is basically a method of price movements not changing it. Any change only if more than 10% of the after effects of Zigzag line. Thus, when a small movement of the filter perfection, overall the idea is good. Here is a starting point of a line is 21.92 and the ending point is 28.99. The difference between is 7.07. In the same way, the difference between the two lines is 4.51 and in three lines 7.42.
• Now the lines one and two of the re-statement = 4.51 / 7.07 = .638. This line is one of the two lines is 63.8%.That’s mean first line is smaller than second line, the second line to the first line of price trends price trends were less strong.
• lines two and three of the re-statement = 742 / 4.51 = 1.646
This is in line with two of the three lines 164.6%. The price trend of the number line more powerful than the number of lines. This way, you can estimate the strength of the next line prediction of price trends can.
Zigzag lines signals?
Zigzag price action signals about the power of ideas, but there is no direct buy or auction. To assist in the creation of the basic analysis. Small changes in the speed of the price do not have a lot of time down in price up to the creation of the myth. As a result, the trader has the opportunity to buy or sell decision a mistake.