We’re discussing the classic ZigZag Indicator here which is formally used in various technical analysis . It is a a trend following indicator which ignores smaller price movements eliminating noise and random price fluctuations.
In the above setup, the distance field of the ZigZag indicator is set to 0.1%. It means it will ignore all price movements of less than 0.1%. This is the closest indicator that shows Swing Highs and Swing Lows connecting them.
The indicators we have developed here are mostly proprietary and, hence not available to most brokers because many traders have a different perception of Swing Highs and Swing Lows.
As said earlier, some traders don’t even consider normal candlesticks for Swing Trading! Let’s see some examples of Swing Trading only using ZigZag Indicator along with price action (i.e. some basic understanding of candlesticks).
We’re analyzing trade by trade and in detail to see the psychological aspect of the trade here. Although the classic ZigZag gauges only major price fluctuations, it is fine to use it for swing trading as long as we are honouring the core concept of the trends!