How useful are the bollinger and zigzag indicators?
Relative to other indicators, how important or relevant are the zig-zag and bollinger indicators?
All are lagging indicators. No use for me in trading.
Bolinger will show the overbought and oversold areas and zig zag support and resistance, but what really moves prices are the news
I don't use zig zag but I do like bollinger bands. I keep the deviation settings at 2 and works well. shows nicely when price is Over bought/sold. I really like it on 5 & 15 time frame
I would rather train my eye to see things rather than use indicators. Bollinger bands narrow and widen - you eyes can also see consolidation and breakout patterns. Zigzag shows swing highs and lows - your eyes can see them too.Use indicators only for things which your eyes cannot see - eg, buying/selling pressure,
Bollinger bands can be used to show both overbought (price is closer to the upper band)and oversold (price is lower to the lower band) as well as price volatility (where the band widenswhen volatility increases and narrow when volatility decreases). It can also double as both support and resistance as the price will always move back into the band when the price move out of theband. This is called reversion to the mean.The way to trade it is when the band narrow the price will breakout on either direction and it's advisable to trade with the direction of the trend which will be more profitable and safer.Another way to trade of the bollinger band is to have a Bollinger band within a Bollinger band with one set at20 period average with 2 standard deviation and another at 1 standard deviation. Go long when the price is above thethe 1 standard deviation band and short when the price is below he 1 standard deviation band.The Zig-Zag indicator is useful for determining the trend especially the swing highs (when price closes both higher than the price previous to it and after it.)and swing lows (when price closes both lower than the price previous to it and after it.)The way to trade it will be to go long on the pullback (do make sure that the new low is higher than the previous low) and short it on the pullback (do make sure that the new high is lower than the previous high). Remeber to trade in the direction of the trend for higher probability of success.
Most of all these conventional indicators are for stock trading not all that suitable for forex trading because of the algorithm trading these days.