Random article: Zig-Zag indicator
Zig-Zag indicator is a famous indicator (overlapping) represented by lines that connect extreme prices (minimum and maximum). Zig-Zag measures price changes as percentage and ignores those does not matching certain criterion. In other words, Zig-Zag is a price filter of a particular kind, because it is able to filter insignificant fluctuations of price. Until change for a scheduled percentage takes place, the line moves along with price. When price changes for the value beyond scheduled value , the line takes a reversal into another side. Thus, chart price is formed by curves (zig zag).
