These lines are then used to identify cycles, and the length of each cycle is used to predict the future price movement. The zigzag arrow indicator is based on the theory that prices move in cycles, and that these cycles can be identified and used to predict future price movements.
When the arrow line crosses above the zigzag line, it is interpreted as a buy signal and when the arrow line crosses below the zigzag line, it is interpreted as a sell signal.Ī zigzag arrow indicator is a technical analysis tool that is used to predict future Zigzag indicator MT4 price movements of a security. ZigZag Arrow Indicator to Identify Uptrend and Downtrends The zigzag line is a simple moving average (SMA) of the security’s price and the arrow line is a moving average of the zigzag line. The indicator is composed of two lines, the zigzag line and the arrow line. The zigzag arrow indicator is a technical analysis tool used to identify potential reversals in the price of a security.
