What is Zigzag?
Zigzag is one of the oldest indicators and is categorized under Custom indicators. Zigzag works by measuring price movements and filtering out unnecessary noise. It calculates based on the swings of price at the highs and lows. Then, it displays these as lines on the chart, which are the Zigzag signals. The main purpose of this indicator is to help filter out small or misleading price movements, allowing us to see the price swings more clearly. This makes the overall chart pattern easier to understand. Zigzag provides signals without being affected by minor fluctuations.
How to activate Zigzag
You can activate it in MT4 by going to
Insert > Indicators > Custom > Zigzag
You don’t need to adjust any settings; you can simply click OK to proceed.
When we open the Zigzag indicator, we will see its appearance with lines displayed like this. It uses the lowest and highest points that the Zigzag has calculated for us. Now, let’s take a look at how it works.
How to use Zigzag
Zigzag displays price movements by referencing the most important price points and filtering out market noise. It can be used across different timeframes to clearly identify the trend of the chart. However, Zigzag does not predict the future or provide direct trading signals. Instead, it helps us decide what kind of trend to look for and better understand whether the market is in an uptrend or downtrend.
Despite its advantages, Zigzag also has a drawback: it shows the latest high or low prices with a delay, meaning we may need to wait some time for Zigzag to signal. Therefore, it is recommended to use Zigzag together with other indicators to assist in trading decisions. Use Zigzag to observe price swings and let other indicators provide signals for entry and exit points.
