Color ZigZag Segments by Relative Swing Size
Summary
ColorZZ modifies the FastZZ indicator by coloring each ZigZag segment according to how its range compares with the range of the preceding segment. Five thresholds map increasing relative sizes to red, gold, lime, aqua, and blue, with blue reserved for the largest ratio. This makes changes in swing magnitude easier to distinguish visually on a chart.
The description gives the threshold scheme but does not explain how to use the colors to generate trades, nor does it provide performance evidence or parameter guidance. It also warns that vertical segments may be colored incorrectly because of a technical limitation in the plotting style. Treat the colors as a visual aid for comparing swings, not as a tested signal or a reliable classification for vertical moves.
Key ideas
- ColorZZ is a modification of the FastZZ indicator.
- Each segment’s color represents its range relative to the previous segment’s range.
- Five ratio bands assign colors from red for the smallest relative swings to blue for the largest.
- Vertical segments may display the wrong color because of a plotting limitation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.