The Zig Zag indicator is an excellent tool for indicating and filtering short-term trend movements. Through the indicator's own settings, it is possible to filter the sensitivity of the indicator, configuring the number of reference periods. The indicator will draw its lines only if the detected movement is greater than the previously configured deviation value, indicating how sensitive the indicator is, for example. This way, the indicator removes noise from the chart, ignoring sideways movements. Its reading is very simple: the bullish leg will always be followed by a bearish leg. Its objective is similar to the Moving Average in that both indicators will show a change in trend when the indicator changes its trajectory.
