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  1. #1
    Moderator Kolyo's Avatar

    Hot Zig Zag Indicator For Binary Options !!!

    Hi guys, Check the Michael’s article on Zig Zag Indicator For Binary Options. He explains in great details how we can use this nice trend following indicator in our daily trading!

    Originally presented by Michael Hodges.

    What Is The Zig Zag Indicator

    The Zig Zag, or ZZ as I will refer to it, is a trend following indicator that tried to weed out random short term price fluctuations in favor of longer term reversal. The indicator works on the simple premise that it will change direction when the underlying assets has changed direction and moved more than X amount. This produces a series of straight lines that produce a pattern that zigs and zags across the chart. This indicator is used to trade all kinds of assets and is most commonly applied to wave analysis as a coincident indicator. Because it relies on a large movement in order to trigger a change in the indicator it is rather backward looking and may not be the best indicator for short term traders.

  2. #2
    Veteran Member Dan21's Avatar
    Nice article and really simple trend following indicator. I like it and make it will definitely test in the future!

  3. #3
    Administrator Martin Kay's Avatar
    Interesting strategy to use with zigzag?

  4. #4
    Veteran Member hchandra's Avatar
    Surely 5 minutes chart is too fast for me, but maybe it can give good result for short term experts.

    Apart from that, I think zig zag really useful to spot extreme level of high and low or peak and valley.

  5. #5
    Specialist Member RCox's Avatar
    I am a big fan of the Zig Zag indicator that is used in MT4 for harmonic patterns.

  6. #6
    Legendry Member Michael Hodges's Avatar
    I think Zig Zag is less suited to short term trading signals and more to long term trend determination. The lines can repaint at the close of any single candle should it move far enough, If I were to use ZZ on a daily chart and it was pointing down I would look for a bearish trade on an hourly chart or shorter.

  7. #7
    Moderator Kolyo's Avatar
    ZigZag indicator is well covered on the forum and the main site too.

    So you can check the articles and threads presented by Bogdan and Martin for more details. I will say here only that this indicator is typical trend following indicator. If there is a trend it will work almost perfect. If there is no trade, the results from its signals also won’t be satisfying and here is the big million dollar question – How to distinguish ranging from trending situations in clear and working manner with at least slightly positive probability. Do you have any ideas guys which indicator or set of indicators can work best for filtering the market conditions. I am using MACD for this but it is not always working very well.

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