How to use the Zig Zag indicator in chart analysis?

The Zig Zag indicator is a tool for identifying major price fluctuations on a chart. It helps traders pinpoint significant market turns while excluding small fluctuations that may complicate the analysis. To use the indicator effectively, you need to set a minimum deviation percentage, which determines when the line should change direction. This allows smoothing out unnecessary noise and focusing on key movements. It is important to remember that the Zig Zag does not predict the future but helps to identify trends, making it useful for confirming other trading strategies and technical indicators.