The Zigzag Trend Indicator by Spyros Raftopoulos
ARTICLE SYNOPSIS ...The Zigzag Trend Indicator by Spyros Raftopoulos
Zigzag is a powerful noise filter, but it's not without its problems. Here's a technique that incorporates the power of zigzag into a more valid and tradable indicator.
The popularity and usefulness of the zigzag
indicator can be ascribed to three important
characteristics. It is an effective noise filter;
it graphically presents the main trend with
great clarity; and it is still a very low-level
indicator, in that its final interpretation of price is not filtered through one or more algorithms, but is
based upon the price itself.