Zigg Short

Zigg Short is the counterpart to Zigg Long. It shows the imbalance in favour of shorts: how much the market is skewed towards selling. The indicator has a local version for a specific coin and several global versions (Global 1 and Global 2) that reflect the state of the market as a whole.

To add Zigg Short to the chart, open the indicators panel and select Zigg Short in the required version: Local, Global 1 or Global 2.

In terms of mechanics, Zigg Short is fully analogous to Zigg Long: value range, order book depth, threshold behaviour and basic principles are the same. The difference is in direction: Zigg Short tracks selling pressure, while Zigg Long tracks buying pressure. If you are not familiar with the general logic, it is recommended to first read the “Zigg Long” section.

How to Interpret the Values

Zigg Short operates in the range from 0 to 100, just like Zigg Long. The scale and parameters are identical, but interpretation is reversed:

high Zigg Short values indicate a pronounced advantage of sellers;
rising values reflect strengthening downside pressure;
zones where Zigg Short reaches extreme levels often correspond to phases of strong selloffs or final moves before a local bounce.

The actual levels depend on order book depth and the instrument: values that look “extreme” at 5% depth can be normal at 10%. The approach to choosing depth and threshold is the same as for Zigg Long.

Local Zigg Short

[Local] Zigg Short is calculated for a single coin (for example, ETHUSDT) and shows how the local market for this instrument is skewed towards shorts.

The local version is especially useful when:

the coin is liquid and actively traded;
the instrument shows persistent downward moves or distribution phases;
you plan to open or manage a short position in this particular coin.

At the same time, not all assets are equally suitable for local analysis. Instruments with low liquidity and irregular behaviour can produce an unstable Zigg Short profile: values change sharply and reflect the real state of supply and demand less accurately. In such cases, it is reasonable to rely primarily on the global versions and treat the local signal as an additional input.

Global Zigg Short (Global 1 and Global 2)

[Global] Zigg Short, like Zigg Long, is available in several variants — in particular Global 1 and Global 2. Both analyse the overall market background, but use different algorithms, which leads to slightly different signal behaviour.

In general:

the global versions of Zigg Short reflect the advantage of sellers across the market;
they help assess whether downside pressure is increasing at the market-wide level;
in different periods the market may be read better via Global 1 or Global 2, which is why they are often monitored together.

For most coins, downward moves are to some extent synchronised with the market as a whole. Growth in global Zigg Short is usually accompanied by transitions of individual assets into decline phases and by less sustainable bounces.

A basic approach is to use global Zigg Short as a filter: whether it makes sense to look for short setups at all, or at least to reduce aggressiveness in longs.

Typical Use Cases

How exactly Zigg Short is used depends on your trading style, but there are several common scenarios.

1. Finding Short Entries

global Zigg Short shows a sustained advantage of sellers in the market;
local Zigg Short for the selected coin reaches elevated values;
price forms a structure suitable for working in the direction of the downside trend.

In this case, Zigg Short acts as confirmation that the move down is supported by real selling pressure rather than a one-off spike.

2. Managing Long Positions

Even if you do not open short positions, Zigg Short is useful for managing existing longs:

rising global Zigg Short can indicate increasing risk for long positions;
local spikes on a specific instrument help to identify zones where partial profit-taking or tighter stops are reasonable;
a combination of high Zigg Short values and weak price response to buying often signals that the market is reluctant to move higher.

3. Filter for “Buy-the-Dip” Attempts

In downtrends, Zigg Short helps to treat counter-trend buys more carefully. If global Zigg Short is at elevated levels, and the local value for a coin also remains high, the probability of a deep bounce is usually lower. This is not a prohibition on trades, but a signal to account for higher risk when choosing position size and targets.

Depth and Threshold

The Depth and Threshold parameters of Zigg Short behave in the same way as for Zigg Long:

depth defines the part of the order book used to evaluate the advantage of sellers;
threshold sets the minimum indicator value that will be shown on the chart.

In practice, it is convenient to apply the same approach as with Zigg Long:

start with depth 5% and adjust it to your style if needed;
select the threshold based on history — around the levels where Zigg Short regularly preceded strong downside moves or phases of active selling;
if you trade both directions (long/short), try to keep Zigg Long and Zigg Short settings aligned for each coin and timeframe.

Practical Notes

Use Zigg Short as a tool for assessing seller activity, not as a standalone “enter now” signal.
Analyse the combination of price + Zigg Short + global background, not only the indicator line in isolation.
Treat the global versions (Global 1 / Global 2) as a “barometer” of the market phase, and the local version — as a tool for refining entries on individual coins.
If local Zigg Short for a coin behaves inconsistently, rely more on the global background and treat the local signal as an additional argument, not the main one.
Integrate Zigg Short into your overall risk management system: stops, position sizing, and exit scenarios.

Where to See Examples and Case Studies

The behaviour of Zigg Short is most clearly seen on a live market. In our Telegram channel we periodically review situations where Zigg Long and Zigg Short help assess the balance between buyers and sellers and show how to use combinations of local and global signals in different market phases.

You can subscribe here: https://t.me/ziggsapp.