Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
If your page isn't loading correctly please Click here
Basic ADVFN Video Help
ADVFN HomeHelpChartsStudiesZigZag
Studies
  Accumulation/Distribution
  Adaptive Moving Average
  ADXR
  Aroon
  Average True Range
  Bid Offer spread
  Bollinger Bands
  Bollinger Band Width
  Buy/Sell Volume Ratio Moving Average
  CCI/MA Crossover
  CCI, The Commodity Channel Index
  Chaikin's Money Flow Persistence
  Chaikin Volatility
  Chande's Momentum Oscillator
  Chart Studies
  Choppiness Index
  Coppock Curve
  Delta Weighted Moving Average
  Detrended Price Oscillator
  Disparity index
  DMI Direction Movement Indictor
  Donchian Channels
  Exponential Moving Average
  Fast/Slow Kurtosis
  Fractal Dimension
  High/Low Moving Average
  Histogram
  Ichimoku Kinko Hyo
  JCM Study
  Keltner Bands
  Kurtosis
  Level 2 Scope
  Linear Regression
  Linear Regression Detrended Price
  MACD Histogram
  MACD, Moving Average Convergence Divergence
  MA Envelopes
  Mass Index
  Momentum
  Money Flow
  Moving Average
  On Balance Volume
  Parabolic SAR
  Path Length
  Point and Figure
  Price Oscillator
  Rate of Change
  Returns
  RSI, Relative Strength Index
  Skew
  Skew Bands
  Std Deviation
  Stochastics
  StochRSI
  The Chaikin Money Flow
  The Chaikin Oscillator
  Three Line Break
  Triple Moving Average
  True Strength Indicator
  Ultimate Oscillator
  Volatility
  Volatility Ratio
  Volume
  Volume+
  Volume Accumulation
  Volume AMA
  Volume Efficency
  Volume EMA
  Volume MA
  Volume Oscillator
  Volume Weight Moving Average
  VWAP
  Weighted Moving Average
  Williams %R
  ZigZag

ZigZag

ZigZag is not an indicator in and of itself, but rather serves to filter out random noise and compare relative price movements. ZigZag can be set to acknowledge minimum price changes and ignore those that do not fit the criteria. The minimum price movements are set in percentage terms and can be based on either the close or high/low range.

Setting ZigZag to 10% gives a line that only reverses after a change from high to low of 10% or greater. If a stock traded from a low of 100 to a high of 109, the ZigZag 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 ZigZag would draw a line from 100 to 110. If the stock continued on to a high of 112, this line would be extended to 112 (100 to 112). This line continues until the stock declines 10% or more from its high - in this instance, it would have to decline 11.2 points to 100.8, to reverse and draw another line.

ZigZag is useful in filtering out volatility and daily price fluctuations. If price movements smaller than 5% are deemed insignificant, then the ZigZag can be set at 5% and all movements less than 5% will be ignored.