# ZigZag

## Description <a href="#description" id="description"></a>

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://33591944-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MYWZsVZVKQjfWwZjJmj%2F-MZNQJLXqC-yZMJF1IoQ%2F-MZNQU1b8xMTCJOcirSi%2FAnalytic%20panels%20-%20Chart%20-Technical%20indicators%20-%20Trend%20-%20Zig%20Zag.png?alt=media\&token=e342264d-175a-45c4-b53f-cd00ae2e64de)

## Formula <a href="#formula" id="formula"></a>

ZigZag finds extremums in price movement. These extremums reflect the deviations of price that are more than settled 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 <a href="#most-useful-cases" id="most-useful-cases"></a>

* **Determine 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 helpful in finding levels of support and resistance, to do it traders generally analysis a price of ZigZag swing and combine closest swings together in one price level

![](https://33591944-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MYWZsVZVKQjfWwZjJmj%2F-MZNQJLXqC-yZMJF1IoQ%2F-MZNQYL3jQTUYTaPevDu%2FAnalytic%20panels%20-%20Chart%20-Technical%20indicators%20-%20Trend%20-%20Zig%20Zag%20\(Most%20useful%20cases\).png?alt=media\&token=a4add67b-6b29-4903-854f-e43751a3b728)