The Zigzag Indicator is a technical analysis tool used to identify price trends and reversals in financial markets. It filters out minor price fluctuations by setting specific parameters for price movement, typically using a percentage or point threshold. When the price movement exceeds this threshold, a line is drawn to connect the significant highs and lows, creating a zigzag pattern that helps traders visualize the overall trend direction without the noise of smaller price movements. It's commonly used in conjunction with other indicators to confirm trading signals and improve decision-making.