Autoscaling Zigzag Swing Detection with a Price-Reversal Threshold

Summary

This document explains an adjustable Zigzag indicator for identifying price swing points. It uses a step-size threshold: the current wave continues until price moves far enough in the opposite direction to confirm a reversal. Unlike the traditional Zigzag approach described here, which uses a minimum number of bars as its depth setting, this version focuses on the size of the price move. The indicator is intended for swing analysis.

A single scale input controls the threshold and therefore the number of detected turns. The document gives suggested starting values for currency pairs, gold, and Bitcoin, while advising trial and error for other markets. These are setup suggestions, not evidence of predictive performance. The source provides no backtest or rules for converting swing points into trades, and confirmed turns necessarily depend on price movement after the prior extreme, so users should not treat the displayed swing points as advance signals. Appropriate scale settings also depend on the instrument and its price units.

Key ideas

• The indicator confirms a swing reversal after price moves by a specified step size.
• Its scale input controls the reversal threshold and the density of detected swing points.
• The method emphasizes price movement rather than a minimum bar depth.
• The document positions the tool for swing analysis and supplies market-specific starting settings.
• The suggested settings require calibration, and the document provides no evidence of trading performance.

Tags

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