Valable ZigZag
- Indicators
- Sergey Ermolov
- Version: 2.5
- Updated: 13 April 2026
Most traders use ZigZag incorrectly.
It does not help to understand the market — it creates false signals and misleads you about the trend.
Valable ZigZag solves this problem by showing the real structure of price movement and the market direction.
Limitations of the classic ZigZag
The classic ZigZag reacts to too many movements.
As a result:
- even minor pullbacks look like significant changes
- level breakouts are perceived as signals but fail to follow through
- it becomes difficult to distinguish a correction from a real reversal
This leads to unnecessary actions and a loss of understanding of the current market movement.
HOW VALABLE ZIGZAG DEFINES THE TREND
Below is a brief explanation of how the indicator works. This will help you better understand how its direction is formed on the chart.
Valable ZigZag performs all analysis automatically, so you don’t need to manually analyze highs and lows while trading.
The logic of Valable ZigZag is based on the sequence of highs and lows.
If the market is moving up, each new low forms higher than the previous one. In this case, Valable ZigZag shows a continuous upward movement. This means the trend remains intact and the priority stays on buying.
Minor pullbacks within such movement are not considered a trend change and do not require reassessing your position.
A change in direction occurs only in one case — when the price breaks the last low and holds below it. At that moment, the structure is broken, and the indicator shows a reversal.
After that, a downward movement begins to form: each new high becomes lower than the previous one. This indicates a downtrend, where the priority remains on selling until the structure changes again.
WHAT THIS GIVES IN PRACTICE
With Valable ZigZag, it becomes easier to understand the current trend and market condition.
The indicator is not overloaded with unnecessary movements, so the structure is clear and consistent, without the feeling of chaos.
It becomes easier to distinguish normal pullbacks from situations where the trend actually changes. This removes the need to react to every price movement and constantly reconsider your market view.
HOW TO USE VALABLE ZIGZAG
You don’t need to manually analyze highs and lows — the indicator already does it for you. It is ready to use immediately after installation.
The main thing to focus on is the direction shown by Valable ZigZag. It is displayed as an arrow in the info panel or by the latest line of the indicator on the chart.
If the line is pointing up and remains unchanged, the uptrend is intact. In this case, there is no reason to look for sell setups — the priority remains on buying. The same applies in reverse: if the line is pointing down, the market is in a downtrend.
Sometimes the line starts changing direction frequently. This means that there is no clear structure in the market, and the movement becomes unstable. In such cases, it is better not to enter the market and wait for a clear trend to appear.
In this way, the complex part of analysis is already handled by the indicator — you only need to follow the direction and trade with the trend.
WHERE TO FIND ENTRY POINTS
Valable ZigZag shows market direction and structure, but does not provide specific entry points.
Once it becomes clear where the market is moving, the next question arises — where exactly to enter a trade, where to place a stop, and how to define targets.
For this, the Owl Smart Levels system is used. It complements Valable ZigZag and provides specific levels for entry, exit, and trade management.
Together, they form a clear and consistent logic:
first the trend is defined, then entry points are found using the system.
HOW TO GET STARTED
Start with the basics — add Valable ZigZag to your chart and observe how it works in real time.
The indicator works equally well across different markets: forex, gold, cryptocurrencies, stocks, and indices.
It can be used on any timeframe, but the structure is most clearly visible on M15 to H1 and higher.
Pay attention to the trend direction and how the indicator filters out unnecessary movements, leaving only the structure. Within a few minutes, it becomes clear how much easier it is to understand the market.
If this approach makes sense to you and simplifies trend analysis, the next step is to use the Owl Smart Levels system to find entry points.
ADDITIONAL MATERIALS
If you want to better understand how the indicator works and how to apply it in practice, explore the additional materials:
- How to Build a Trading Strategy Based on Valable ZigZag
- ZigZag Does Not Give Signals — 3 Mistakes That Prevent You from Understanding It
- How to Find Precise Entries: ZigZag + Price Action in Practice
- False Breakouts and Market Structure: How Valable ZigZag Handles Them
INDICATOR SETTINGS
Valable ZigZag does not require complex setup and can be used immediately after installation.
The core logic of the indicator is based on Full Fractals, so the parameters remain simple and clear. In most cases, default settings are sufficient.
The following parameters are available:
- Candles on the left — number of bars on the left to form a fractal
- Candles on the right — number of bars on the right to form a fractal
- Number of bars to calculate — how many bars are processed on the chart
- Show info panel — enables or disables the info panel
By adjusting the number of bars, you can make the indicator more sensitive or smoother.
If you are just getting started, it is recommended to use the default settings first and focus on understanding how the indicator works.
QUESTIONS AND DISCUSSION
If you have questions about setup or usage — feel free to ask in the comments.
It would also be useful to know how you currently define the trend and what challenges you face in market analysis.
Valable ZigZag is a tool that removes unnecessary noise and helps you focus on what matters most: trend direction and market structure.
It does not overload your analysis and helps you understand the market faster, without trying to react to every price movement.
If you found the indicator useful in your trading, I would appreciate your feedback — it helps improve the project and make it even better.
very useful indicator as far as external fib level calculation is concerned.Good for elliotwave count as well.