Question

How will you measure a zig-zag line? Explain.​

Answer 1

Answer:

The Zig Zag indicator plots points on the chart whenever prices reverse by a percentage greater than a pre-chosen variable. Straight lines are then drawn, connecting these points. The indicator is used to help identify price trends. It eliminates random price fluctuations and attempts to show trend changes. Zig Zag lines only appear when there is a price movement between a swing high and a swing low that is greater than a specified percentage; often 5%. By filtering minor price movements, the indicator makes trends easier to spot in all time frames.

Calculate the Zig Zag Indicator:

Choose a starting point (swing high or swing low).

Choose % price movement.

Identify next swing high or swing low that differs from the starting point = > % price movement.

Draw trendline from starting point to new point.

Identify next swing high or swing low that differs from the new point = > % price movement.

Draw trendline.

Repeat to most recent swing high or swing low.

Explanation:

HOPE IT HELPS.......