Zig Zag indicator is one of the most underrated trading indicators that you can find and set on the Olymp Trade trading platform.
How to find and set the Zig Zag indicator at Olymp Trade
The first you need to do is log in to your Olymp Trade account and set your chart to candlestick don’t try this indicator with the area chart you may face a lot of difficulties.
Next, click on the indicator button and select the Zig Zag indicator from the bottom of the list.
What is Zig Zag indicator?
Zig Zag indicator is a technical indicator used by traders to identify the current movement of the price. This indicator ribbons around the price and displays the high and low of the security. Traders call it Zig Zag because it moves around the price in a Zig-Zag way.
Zig Zag Trading Strategy: How to trade with Zig Zag indicator at Olymp Trade using Support and Resistance
Zig Zag is a great indicator if you want to find the past movement of the security However, it does not provide the forecast for the price trend.
The best way to use this indicator is by combining it with support and resistance or with the indicators like RSI or Stochastic.
The moment the Zig Zag indicator touches the resistance level. It indicates that the downtrend is likely to enter therefore, we should place a sell trade in this option.
Similarly, The moment when the Zig Zag line touches the support level is an indication of an upcoming bullish trend so, here we can place a buy trade.
Zig Zag Indicator plus RSI
Combing the Zig Zag indicator with RSI and support and resistance can give you high-quality signals.
When the Zig Zag is near the support level plus the RSI line is near the oversold level is a signal of strong upcoming bullish trend. So, here we can place a buy trade.
Similarly, When the Zig Zag line touches the resistance level plus the RSI line is near the overbought level is a signal of an upcoming bearish trend so, here we can place a sell trade.
The Zig Zag indicator is a popular technical analysis tool used by traders to identify significant price movements and trend reversals in the market. It does this by filtering out market noise and creating a zig-zag pattern that connects significant price highs and lows.
Traders can use the Zig Zag indicator in a variety of ways, including identifying trend direction, setting stop-loss orders, and determining potential entry and exit points. One popular method is to look for areas where the Zig Zag lines converge, indicating a possible trend reversal.
You have gained a proper knowledge on how to trade properly with Zig Zag indicator the best thing you do is try this indicator at the Olymp Trade demo account and see how this indicator behaves for you.