Adaptive Zig Zag (AZZ)

The AZZ indicator plots points on the chart whenever prices reverse by a percentage greater than an average height of the Adaptive Price Channel. Straight lines are then drawn, connecting these points.

AZZ lines only appear when there is a price movement between a swing high and a swing low that is greater than an average price channel height.

The indicator is used to help identify price trends. It eliminates random price fluctuations and attempts to show trend changes.

The AZZ indicator helps to identify potential support and resistance zones between plotted swing highs and swing lows.

AZZ lines can also reveal reversal patterns, i.e. double bottoms and head and shoulders tops.