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The lower chart shows the Zigzag (retrace) indicator set at 8%. With this setting, I chose to filter out price moves that were less than 8%. Notice how the 8% Zigzag filters the volatility seen in late June and July. The Zigzag (retrace) also shows the retracement amount. In this case, the five week decline has retraced 32.4% of the June-Sept advance. One final note: the last line in the Zigzag simply extends from the prior high or low to the current price. It is often less than the Zigzag setting and subject to change as prices evolve. You can read more on the Zigzag in our ChartSchool article.