Hidden ZigZag Indicator
The Hidden ZigZag Indicator, often utilized in technical analysis, aims to identify potential trend reversals and support/resistance levels by filtering out price noise. Trading rules typically include:
- Buy signals occur when the price breaks above a previous swing high identified by the indicator, suggesting upward momentum;
- Sell signals emerge when the price drops below a previous swing low, indicating potential downward movement;
- Use trend confirmation through additional indicators (e.g., moving averages or RSI) to validate entries;
- Set stop-loss orders just beyond the last swing high/low to manage risk; and
- Consider taking profits at identified support or resistance levels based on the ZigZag's plotted data. Always backtest strategies and adapt to current market conditions.