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< Return to Glossary
 

Zig Zag

The Zig Zag (Basic) overlay is a collection of straight lines that connect significant tops and bottoms on a price graph. It takes a single parameter that specifies the percentage that the price must move in order for a new "zig" or "zag" to appear. Zig Zig does not predict trends and should not be used on its own.
(source: StockCharts.com)
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