A ZigZag Variant That Uses Closing Prices

Summary

This indicator modifies the built-in MT4 ZigZag calculation by using the highest and lowest closing prices in the chart’s price history instead of the highest Highs and lowest Lows. It is intended to mark swings using closes, so intrabar extremes that do not persist into the close can produce different turning points from those in the standard version.

The document compares the standard ZigZag, shown in red, with the close-based variant, shown in yellow. It says the differences are sometimes small and sometimes substantial, but provides no formula details, parameter settings, quantitative evaluation, or trading rules. The comparison illustrates a change in input price basis; it does not establish that close-based pivots are more accurate or useful for forecasting. As with ZigZag indicators generally, the document does not discuss how plotted pivots may change as later price data arrives.

Key ideas

• The variant finds swing extremes using closing prices rather than intrabar highs and lows.
• Its plotted path can differ from the standard ZigZag, with differences ranging from minor to significant.
• The document illustrates the distinction with a chart comparison but gives no numerical evaluation.
• It does not establish predictive value or describe a complete trading strategy.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.