The Zigzag indicator eliminates all the noise in the market. It will give you a clear picture of the price change from one place to another. It helps traders to see the lows and highs of the entire trading period. The indicator is based on the closing price, which makes it known as a herringbone closing indicator.
The indicator is a tool for determining appropriate entry points, especially in volatile periods. The most attractive thing is that you are able to use this Zigzag close indicator on any time frame or forex pair.
How to use the indicator
Zigzag close indicator in Metatrader 4. In other words, it provides general market information about price fluctuations, rather than formulating or providing precise entry points. Most of the time, it is used as an auxiliary tool and it is an underrated indicator for technical aspects of analysis.
What is the best way to use this indicator?
It charts market patterns, ignoring minor retracements. This can help identify chart patterns, such as head patterns. It is important to note that the Zigzag indicator is a redrawn indicator. This means that when a new high or low occurs, the indicator is redrawn.
Trading and buying signals
The Zigzag Closing Indicator is an original indicator. In essence, it functions as a tool for confirming the counting of Elliott waves and identifying harmonic patterns. Therefore, it is recommended to use it in conjunction with your trading strategy as a confirmation to ensure that you are in the right position to buy and sell.
Create lower highs and then create a reversal of the double bottom pattern on the chart. Please note that a double bottom pattern is a good buy signal. The indicator generally removes any market noise and gives us a clear view of this bullish pattern.