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Zig Zag

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Zig Zag
A Technical Analysis indicator that filters out changes in an Underlying plot that are less than a specified amount.

In other words, it helps to show only significant changes.
    
A zig zag indicator is a trend following indicator that is used to predict when a given Security's momentum is reversing. The indicator is used by traders to eliminate random price fluctuations and attempts to profit when the trend changes. Like many trend following indicators, the disadvantage is that the result is based off past price  history and doesn't change direction until a certain move occurs. Given the lag, many traders Will want to use the Zig Zag indicator to confirm the direction of the trend rather than timing an entry/exit.
Posted by  Convention of Independent Financial Advisors CIFA
 
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