Zig Zag Triad Indicator

Zig Zag Triad Indicator

Discover potential trend reversals with the Zig Zag Triad indicator, a powerful technical analysis tool. Combining ZigZag filtering and Triad patterns simplifies chart analysis, offering more precise signals on large price swings

Features of the Zig Zag Triad Indicator
The Zig Zag Triad indicator is a technical analysis tool traders use to identify potential trend reversals and continuation patterns. It is a combination of two elements:

ZigZag indicator: This indicator simplifies the price chart by filtering out small price movements and only connecting big highs and lows. ZigZag makes the underlying trend easier for traders to see.
Triad patterns: These are three-bar candlestick reversal patterns that can signal a potential change in trend direction.
The Zig Zag Triad indicator combines these components, which enables it to recognise triad patterns on the condensed ZigZag chart. Compared to using triad patterns on the raw price chart, the indicator seeks to deliver more precise signals by concentrating on large price swings.

How the Indicator Can Benefit You

This indicator shows potential trend reversals on a price chart. You can use it to enter trades. The indicator gives entry signals using coloured dotted lines. A blue-coloured dotted line signifies a bearish signal. You could take a short position here and exit when a red dotted line appears. The red dotted line, on the other hand, signifies a buy signal. You should enter a long trade and exit when a blue dotted line appears.