📊 TECHNICAL
ZigZag
Classic swing filter that connects only significant swing highs and lows above a minimum percentage deviation, cutting through noise to reveal the dominant price structure.
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Live Demo — ZigZag applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is ZigZag?
A classic charting tool that strips out minor price wiggles and draws straight lines connecting only swing highs/lows that exceed a minimum percentage move, simplifying the underlying trend structure.
How It Works
- Starting from the most recent confirmed extreme, tracks price movement in the current direction.
- A new swing point is confirmed once price reverses by at least the
deviationpercentage. - A line is drawn from the prior point to the new one, then tracking resumes.
- Smaller retracements below the threshold are ignored entirely.
Parameters
| Parameter | Default | Description |
|---|---|---|
| deviation | 5 | Minimum percentage price reversal required to confirm a new swing point |
Signal Interpretation
- Rising ZigZag highs/lows confirm an uptrend structure.
- Falling ZigZag highs/lows confirm a downtrend structure.
- A leg failing to make a new extreme in the prevailing direction hints at weakening momentum.
- Leg length/steepness gives a quick read on trend strength.
- ZigZag points often align with AI Support & Resistance levels.
Tips & Best Practices
- Increase deviation on volatile instruments or higher timeframes.
- Decrease deviation on lower timeframes to capture finer swing detail.
- The most recent segment can still repaint until the next reversal threshold is met.