The ZigZag Channel indicator combines the ZigZag indicator – used to draw and better identify the highs/lows that the price makes, with a price channel drawn on the the chart by the zigzag highs/lows. This way the traders, especially those trading with the trend or trading breakouts, can better identify the best time to enter their trades.
As seen above (and below) the zigzag indicator is performing extremely well identifying the trend reverse signals, such as double top or double bottoms.
The settings are easy and simple to understand. The indicator has the option to customize the way the channel looks and to set alerts whenever the price breaks out of the price channel.