Building Candles from Successive Zigzag Price Pivots

Summary

This indicator turns successive Zigzag pivots into synthetic candles. A configurable lookback identifies candidate swing highs and lows, while a candle-size setting determines how many pivots form each displayed candle. The first and last pivots in the group define its open and close; the highest and lowest pivots define its wicks. Color indicates whether the synthetic candle rose, fell, or had equal endpoints. The indicator locates wick extremes at the bars where those pivots occurred and carries the latest pivot forward as the next candle’s open.

The document presents this as a visualization and a possible foundation for later trend-following tools, such as averages or volatility bands; it does not provide a trading strategy or performance evidence. Zigzag pivots depend on subsequent price movement, so recent points may shift as new data arrives. The resulting candles summarize swing structure rather than ordinary time-based OHLC bars, and their appearance depends on the selected pivot length and number of pivots grouped.

Key ideas

• Each synthetic candle summarizes a configurable group of Zigzag pivots.
• The group’s endpoint pivots set the candle body, and its extremes set the wicks.
• Colors distinguish rising, falling, and unchanged pivot sequences.
• The indicator is a visualization concept, not a tested entry or exit strategy.
• Recent Zigzag pivots can change as price develops, so the display may be revised.

Tags

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