Advanced Tools Plug-in:
Zig Zag Overlay Indicator
The Zig Zag Indicator acknowledges minimum price changes and ignores those that do not fit the criteria.
A Zig Zag set at 10% with OHLC bars would yield a line that only reverses after a change from high to low of 10% or greater. All movements less than 10% would be ignored.
If a commodity traded from a low of 100 to a high of 109, the Zig Zag would not draw a line because the move was less than 10%. If the stock advanced from a low of 100 to a high of 110, then the Zig Zag would draw a line from 100 to 110.
If the commodity continued on to a high of 112, this line would be extended to 112 (100 to 112). The Zig Zag would not reverse until the commodity declined 10% or more from its high.
From a high of 112, a commodity would have to decline 11.2 points (or to a low of 100.8) for the Zig Zag to reverse and display another line.
Zig Zag Overlay
Zig Zag Chart Overlay Indicator is included with the Advanced Tools Plug-in.
To View a list of all of the indicators that are included with your purchase of the Advanced Tools Plug-in Click Here
