How to Use the Zig Zag Indicator in Fixed Time Trading on Olymp Trade Platform?

 

Blog Introduction: The Zig Zag indicator is a powerful tool that can help you find trend reversals and market turns with ease. In this blog post, we'll show you how to use the Zig Zag indicator inFixed Time Trading on Olymp Trade platform. With this simple yet effective indicator, you'll be able to make better-informed trading decisions and improve your overall trading results.

How Does the Zig Zag Indicator Work?

The Zig Zag indicator is a technical analysis tool that uses a series of successive highs and lows to filter out smaller price moves and identify only the larger price swings. These larger swings are then connected by straight lines, forming a kind of "zig-zag" pattern. The degree of the move (i.e., the size of the swing) is adjustable, and traders can use different settings to suit their own trading styles and preferences.

 

Why Use the Zig Zag Indicator?

There are several reasons why traders might choose to use the Zig Zag indicator. First and foremost, it can be used to help identify market trends. By filtering out small price movements, the Zig Zag indicator makes it easier for traders to spot when a market is trending up or down. This can be helpful in making decisions about when to enter or exit a trade.

 

In addition, the Zig Zag indicator can be used to help identify potential support and resistance levels. This is because when prices reverse at certain points along the zig-zag pattern, it's often an indication that there is significant buying or selling pressure at that level.

 

Finally, some traders also use the Zig Zag indicator as a confirmation tool in conjunction with other technical indicators or chart patterns. For example, a trader might wait for a candlestick pattern to form at a point of resistance before entering a short trade when using the Zig Zag indicator alone as confirmation.

 

                Conclusion:         While it's not necessarily a stand-alone trading tool, the Zig Zag indicator can be quite useful when used in conjunction with other technical indicators or chart patterns. By understanding how it works and how to use it properly, you can improve your overall trading results.