The Zig Zag tool is designed to be complementary and should not be the focal point of a forex trading strategy. It is most commonly used in conjunction with Fibonacci or Elliott Wave trading systems.

The Zig Zag indicator is often used in conjunction with Elliot Wave Theory to determine the positioning of each wave in the overall cycle. Traders can experiment with different percentage settings ...

[Image 3] Additionally, it is common for the A-B-C zigzag to create a price channel. So we can use the price channel as a means to estimate the ter mination point of C and the zig zag pattern.