# 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://1574671354-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQAglKSOJnxCrGxFyuplO%2Fuploads%2Fgit-blob-c81f2843416c484ca5a2310d9262d15f16b4df6f%2Fimage%20\(9\).png?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://1574671354-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQAglKSOJnxCrGxFyuplO%2Fuploads%2Fgit-blob-145e1485f29f41b9e7e45d5fff47bb94302ee52a%2Fimage%20\(23\).png?alt=media)

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