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Last updated
Last updated
Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.
How to access the studies in MotiveWave:
Go to the top menu, choose Study>Study Group>Study Name
or Go to the top menu, choose Study>All Studies> Start typing in the study name until you see it appear in the list> Click on the study name> Click OK.
Zig Zag draws lines between low and high points that represent movements greater than the given percentage. The user may change the period lengths, reversal percentage amount, price movements, and label options. This indicator’s definition is further expressed in the condensed code given in the calculation below.
No trading signals are calculated for this indicator.
//high input = price, user defined, default is Midpoint //low input = price, user defined, default is Midpoint //reversal percent = user defined, default is 1 //price movements = user defined, default is true //price labels = user defined, default is true
The Zig Zag Oscillator is the oscillator version of the Zig Zag indicator that also displays lines between low and high points that represent movements greater than the given percentage, but it is plotted on a separate graph showing the delta as bars. Similar to Zig Zag, the oscillator is a useful tool for filtering out smaller price movements that exclude noise and false signals. Traders can use this indicator in combination with other technical analyses for trend validation and potential trading signs.
How to trade using the Zig Zag Oscillator
The price changes oscillate around the zero line. When the oscillator is above the zero line, it confirms an uptrend, and therefore, signals bullish momentum and buying opportunities. Conversely, when the oscillator is below the zero line, it confirms a downtrend and therefore, suggests a bearish trend and traders might consider selling.
