1.1. trade zigzag indicator
1.2. trade zigzag strategy
1.3. zigzag scalping strategy
Trading on Cryptocurrency Bitcoin/Etherium with ZigZagging through
The Zigzag is a trend following indicator used to predict when a given security’s momentum is reversing. The indicator is used by traders to eliminate random price fluctuations and attempts to profit when the trend changes. The Zig Zag tool is often used in wave analysis to determine the positioning of a stock in the overall cycle. It is used with the same success in trading cryptocurrencies and the recent price hikes have demonstrated the validity of reversing pricing on the crypto market.
As with many trend following indicators, the disadvantage is that the result is based on past price history and does not change direction until a certain move occurs. Given the lag, many traders use the Zig Zag indicator to confirm the direction of the trend rather than the timing of an entry/exit.
The Zig Zag indicator operates as a filter for directional changes in price movements. Technical analysts and forex traders apply the Zig Zag filter to remove unnecessary noise from the price chart. The goal is to focus on the important trends, not insignificant fluctuations. This indicator is less ambitious than many other technical tools and should never act as a trading system on its own. Instead, the Zig Zag indicator is best used to highlight important patterns and confirm possible trend reversals.
The Zig Zag indicator is easy to understand and apply. Price changes below a specific threshold, normally 10% or 20%, are removed from trend lines through a filtration process. Most trading software or online trading platforms have simple input fields that allow you to set the parameters of your own Zig Zag preferences.
The higher you set the price change threshold, the less sensitive the indicator becomes. Too low of a spot results in an ineffective Zig Zag; not enough noise is removed. Too restrictive and one may miss profitable price trend data. Most default settings have the threshold between 8% and 15%.
This 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 Elliot Wave trading systems. Swing traders love the Zig Zag because it helps them analyze entries on retracements. The Zig Zag indicator is there to apply consistency to trading signals. This should translate into a more consistent application of other trade strategies. Whatever trading strategy is use, the Zig Zag is a lagging indicator. It does not predict anything on its own. The ZigZag forex trading strategy is a scalper’s delight, as it offers a whole new dimension towards making profits on price moves. The settings depend on the program used.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.