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Zigzag is an indicator used in the chart of technical analysis. It functions as a filter for directional changes in the movement of price. Technical analysts and forex traders use the Zig Zag filter to eliminate irrelevant noise from the price chart. The purpose is to concentrate on the essential trends in the market, not unnecessary fluctuations. But let’s see a few advantages and disadvantages.

Wave analysis is an ideal form of technical analysis used by finance traders to analyze financial market cycles and estimate market trends, observing investor psychology, price fluctuations, and other common factors. Elliot found out that there is a repetitive pattern in the market.