Divergence-Based Support and Resistance from Zigzag Pivots

Summary

This indicator draws horizontal support and resistance levels only at Zigzag pivots associated with regular or hidden divergence. It can calculate two Zigzag lengths, with oscillator choices including RSI, CCI, momentum, and stochastic measures; an external oscillator source is also available. Oscillator periods are derived from the Zigzag length. The script uses imported indicator libraries to identify pivots, divergence, and trend bias, then retains a configurable number of recent levels.

Line color and symbols communicate bullish or bearish divergence type, while the price level’s position determines whether it is treated as support or resistance: levels below price are support and those above are resistance. The author frames divergence as evidence of temporary momentum weakness, not a standalone trend signal, and omits continuation and indecision pivots. The document explains the construction and display logic but provides no quantitative test of how reliably these levels predict reactions; the indicator is best understood as a charting aid rather than a demonstrated trading system.

Key ideas

• The indicator plots horizontal levels at Zigzag pivots with regular or hidden oscillator divergence.
• It supports two Zigzag lengths and several oscillator choices, including an external source.
• Bullish and bearish divergence types receive different colors and symbols, while price location defines support versus resistance.
• Continuation and indecision pivots are excluded, reducing the displayed set of candidate levels.
• The document describes indicator logic but gives no measured evidence of predictive performance.

Tags

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