[RS]ZigZag Percent Reversal - Forecast - patterns - labels — Indicator by RicardoSantos

TradingView

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volatility trendanalysis breadthstudies zigzag range average forecast pattern time level

description:
• Zig Zag indicator plots points on the chart whenever prices reverse
by a percentage greater than a pre-chosen variable.
• Forecasts area based on zigzag statistics.
• Displays labels with detected patterns.
• Displays slope information rate of price, time diferentials and angle(experimental)

Release Notes: Added optional input method for zigzag be based on ATR percentage of price with additional optional multiplier.

Hi Ricardo, thanks for the great indicator!

miaomiao18

@RicardoSantos I trade trend, and spent time testing this indicator on crypto, on D and 4hr chart, it seems it doesnt work well, as the orange dash prediction line and the box seem to be moving in small rang and following the trend up. maybe it's good for trading that count on next day price up or down? or maybe I did not get how to make it work on crypto chart better?

miaomiao18

@miaomiao18, you need to adjust for the underlying volatility, the current zigzag method doesnt work very well with high volatility theres on the TODO list optional methods to draw the zigzag, no ETA tho..

RicardoSantos

@RicardoSantos, Thanks for your reply!

RicardoSantos

@RicardoSantos, in the box, there shows an 4 arrow star, does it indicate anything for the user? or it's something in the code to define the box size and location only?

miaomiao18

@miaomiao18, its the average+deviation in price/time zigzag move, in other words is the most likely target for the zigzag, this has a short pool span so it will adapt "quickly" to changes in volatility, its also the basis for the box.

Hello @RicardoSantos I have been trying to modify your script so it plots an hline at the half way of the zigzag line. Example if the line is plottet from 10$ LL to 20$ HH, then an Hline will appear at price level 15$. This is described by Al Brooks in his trading courses and signifies an important level of retracement. I would really appriciate it if you could help me out on this one!

Tested in 5 and 30 min.

Hi Ricardo, i tested your zigzag in combination with use by hand the built-in trendbased fibo-extension indicator (0.618 - 1 - 1.618) with remarkable results on the dutch index AEX.
Price hits one of these levels most of the time, but they differ from your zz levels 0.618 - 1.618 with other results despite using several % and weight settings. Is the use of these levels in fib. extensions one of your next steps? By the way, did you receive my message with some code (Lobsangs arrow) in Tas-script.

poentje

@poentje, the 0.618/1.618 are the limits of the box, 0.618 of the nearest avg range(combination of the nearest blue arrows tips) and 1.618 from the furthest away from avg range. so they arent meant to coincide with the fibo tool.
fibos will be part of the pattern target's when implemented(many overlap) when implemented, its on the todo.