Zig Zag Indicator

The Zig Zag Indicator is a technical analysis tool commonly used in financial markets, including banking, to identify and visualize trends and potential reversals in price movements. It is primarily applied to charts of stock prices, indices, or other financial instruments. The Zig Zag Indicator helps filter out minor price fluctuations or noise and focuses on significant price changes. It achieves this by connecting the most important swing highs and swing lows in the price chart, creating a zigzag pattern. This indicator helps traders and analysts identify trend changes and potential support and resistance levels.