The MT4 zigzag changes direction when a new bar is higher or lower than the highest high or lowest low of the last 'Depth' bars. Well, almost. It has some added hysteresis which is the reason for the complicated code it comes with.
But I guess that is not really what you want to know. I do not have any info on non MT4 zigzag indicators, but the principle must be similar.
Joined Jan 2007
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Status: developing...
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@canada,
To get that information there is no getting around wading into the inner logic and calculations of the zig zag.
Please see the Zig Zag is not Zig Zag thread for one of the best in-depth looks at zig zag that I've seen anywhere, including some info regarding zig zag concepts outside of the MT4 world.
As an aside, there is also an interesting but short chapter (5) on zig-zag in the book "The Definitive Guide to Futures Trading Volume II" by Larry Williams titled "Zero Balance". The forecasting method discussed in this chapter isn't very accurate but the discussion spawned some ideas at least for me.
