Can anyone explain the ZZ indicator?

One of the threads on this forum discusses a system for trading. As a newbie, I want to make sure that I understand the indicators on the attached chart.

To start with, can someone explain the zigzag indicator with the 123 ZZ semafor.

There are three (3) periods:

P1 = 5.0
P2 = 13.0
P3 = 34.0.

Dev_step 1 = 1,3
Dev_step 2 = 8,5
Dev_step 3 = 13,8

Symbol_1_Kod = 140
Symbol_2_Kod = 141
Symbol_3_Kod = 142


This indicator is supposed to be a leading indicator or a "heads up" on changing directions - if I get it correctly.

no answers yet?

i guess you need to go back to the thread: http://www.forexfactory.com/showthread.php?t=276813

you should find the answer over there.
good luck.

The ZZ indicator refers to the ZigZag algorithm. It connects the primary top and bottom lines of a price trend. It can be used to determine past movement and volatility.

So the idea is to follow the trend. The Big # 3 marks the major trend direction. For example, #3 at the top = an upward trend. Then wait for the # 2 pullback, which will be below the # 3 as noted in an upward trend. Use this pullback as an entry point to follow the major trend.

Is this the point of the ZZ indicator?