What is a zigzag?
The full form of zigz is a zigzag indicator,and it is used to lower the fluctuations of the random price and identify price changes.
The zigzag indicator drawsa graph whenever there are fluctuations in price and whenever the price changes from the price from pre-decidedprice,and this help the traders to identify different prices. The graph does not move when the price change is less than 5%,and as zigzag takes note of even this smaller price,it makes it easier to spot the price at any time.
Why use zigzag
- You can have stocks at lower prices as by keeping an eye on the zigzag graph you can know the pattern of the price going up and down and get the stock when the price will at its lowest and sell it when it worksat its highest because of which zigzag can keep, you in profit once you learn how to understand the graph.
- It can be less risky if you know how to use it,as researching the stocks before buying them can always be less risky, and watching the graph and understanding it can have a very low probability to have a minor loss.
- It gives you high potential returns as you don’t need to calculate on a calculative to see if you are spending less money or getting the same interests.
- They provide more strategic alertness.
As there can be some e disadvantages, you have to know before using zigzag that it can go through the lag as the other websites and the previous graph can be drawn twice.
- Make sure that you have set a large indicator setting for the depth in comparison to high.
- Draw Fibonacci line once the two swings are completed
- Have patience and wait for three-wave swings
- And now wait for the bars to get drawn,which should be higher low at right and left
- You have to buy near the three-bar pattern
- Protective loss below the bars should be confidential
- Enjoy your profit.
Different percentage settings can be used to see the best result by only experiments. It only notes the present and past prices and does not depict the future. It can also reveal a reversal pattern.