The ZigZagPoint function is used in the ProBuilder language to represent the Zig-Zag indicator, which is a technical analysis tool used to identify price trends by filtering out minor price changes. This function is particularly useful in the context of Elliott Wave theory, where it helps in visualizing and identifying the significant peaks and troughs in price movements.

Syntax:

ZigZagPoint[Zp](price)

Where:

• Zp is the number of points used to calculate the Zig-Zag indicator.
• price refers to the price data (such as close, open, high, low) on which the Zig-Zag calculation will be based.

Example:

myZigZag = ZigZagPoint[10](close)

This example calculates the Zig-Zag indicator based on the closing prices of the last 10 points. The result, myZigZag, can be used to analyze the major price changes and potentially identify trend reversals or continuations.

Additional Information:

The Zig-Zag indicator is a non-predictive tool used to clarify the price movements by eliminating fluctuations considered too small to be significant. It is widely used in the analysis of Elliott Waves, which are patterns in price movements that reflect the collective psychology of market participants. Understanding the Zig-Zag indicator can help traders and analysts discern the underlying patterns in price movements, making it easier to anticipate future market behavior without the noise of minor fluctuations.