Binary options zig zag. Zig Zag Indicator For Binary Options – ZZ on Top of Trading
It measure retracement of trend and weeds out short term fluctuations.
Find out how to use this indicator with binary options. The Zig Zag, or ZZ as I will refer to it, is a trend following indicator that tried to weed out random short term price fluctuations in favor of longer term reversal. The indicator works on the simple premise that it will change direction when binary options zig zag underlying assets has changed direction and moved more than X amount.
This produces a series of straight lines that produce a pattern that zigs and zags across the chart. This indicator is used to trade all kinds of assets and is most commonly applied to wave analysis as a coincident indicator.
Because it relies on a large movement in order to trigger a change in the indicator it is rather backward looking and may not be the best indicator for short term traders.
Line, dot and mountain style charts are based on closing prices so the ZZ line is based on those same closing prices. Lines are drawn from the high of the peak to the low of the trough, or vice versa as the case may be.
Once the line changes direction it will remain in that direction until price reverses by the set margin again. Traders need to be careful of the last line in each series because it is not set and could change if asset prices change.