Trading Tips

“Market noise” refers to price and volume fluctuations that are NOT reflective of true market sentiment. These fluctuations temporarily disrupt a chart pattern and can confuse even the most savvy traders.

But what if you had a secret tool that would screen out “market noise” and let you differentiate between “noise” and TRUE market sentiment? What if you had a filter?

Believe it or not, such a tool does exist: It’s called the ZigZag overlay, and in this video, you’ll learn how to use it like a pro.

In this episode, you’ll learn:

- A thorough definition of “market noise” and what typically causes it (0:32)

- How the ZigZag overlay works, and how you can customize it to make real trends more easily visible (0:59)

- Three additional and advanced uses of the ZigZag overlay (1:49)

- Some of the drawbacks to using the ZigZag overlay (1:25)

This video also looks at two examples of a stock chart with ZigZag overlays set at different customizable settings, and then shows you exactly how to get ZigZag overlays on your own stock charts — for free! — online.

The ZigZag overlay is a powerful and underutilized tool that allows you to filter market noise, spot real trends, and — in conjunction with advanced tools like Elliot Waves and Fibonacci values — make some powerful predictions. If you’ve never heard of the ZigZag before, you’re not alone — watch this video and learn all you need to know. And even if you HAVE heard of the ZigZag overlay before, chances are you’ll learn something new.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

P.S. LastHourTrading.com just opened its doors to the public! Only 250 spots available.

Episode 40 - The ZigZag Overlay

Download the slides for “The ZigZag Overlay”