ZIGZAG (ZigZag) is one of the most popular and widely used indicators of Marketscope.

ZIGZAG is considered to be a trend-following indicator as it smooths the market noises and shows price trends more clearly. But the majority of traders use it as an auxiliary tool that helps identifying common chart figures, such as Head and Shoulders, Elliott Waves, and support and resistance levels, to name a few. For this purpose, the indicator singles out price bar successions of upward or downward direction, identifies their highest and lowest values, and connects them with a line. The process is automatic and requires satisfying the requirements of certain setting parameters (read later in the article). As a result, on the market price chart, a broken line with segments of alternating colors is drawn.

Note that the indicator can also be drawn in an additional area below the market price chart.

On the following picture, you can see an example of ZIGZAG drawn on the market price chart.

To apply a ZIGZAG indicator to a chart, a trader needs to follow the procedure common to all Marketscope indicators. For more information, see the Add Indicator article.

During the procedure, a trader can customize an indicator by specifying its parameters in the Properties dialog box. For more information, see the Change Indicator Properties article.

The parameters fall into two groups:

The ZIGZAG indicator has three Calculation parameters:

The parameter is available on the Parameters tab of the ZIGZAG Properties dialog box under the Calculation heading.

When a ZIGZAG indicator is drawn, a trader can use its line's shape in identifying certain chart figures.

On the following picture, you can see an Elliot Waves pattern identified with the help of the ZIGZAG indicator.

The ZIGZAG indicator's values are calculated automatically and presented on a chart as a broken line.