# ZigZag

## Description

ZigZag is a trend following indicator which allows to determing trend swings. A combination of ZigZag highs and lows can be used as a support or resistance level. Also it helps to identify significant changes in price and filter out short-term fluctuations.

![](https://1239679454-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LYX3ccu0Q61og0sdCbP%2F-Lt4f5XUyWUbILd7oY_y%2F-Lt4f9HuZnlZVNyquLo7%2Fimage%20\(9\).png?generation=1573126973689851\&alt=media)

## Formula

ZigZag finds extremums in price movement. These extremums reflect the diviations of price that are more than setted value. By default value for a ZigZag is 5%, it will ensure that only price fluctuations of 5% or more will be shown in the chart.

## Most useful cases

* **Determing swings** - the most common case of ZigZag usage is an eliminating a small price fluctuations and paying attention on huge price swings.
* **Support/Resistant levels** - ZigZag also is very helpfull in finding levels of support and resistance, to do it traders generally analyse a price of ZigZag swing and combine closest swings together in one price level

![](https://1239679454-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LYX3ccu0Q61og0sdCbP%2F-Lt4f5XUyWUbILd7oY_y%2F-Lt4f9Hx3_eL2fJ_z-Ym%2Fimage%20\(23\).png?generation=1573126974988979\&alt=media)