Finding Support and Resistance with ZigZag Pivot Clusters
Summary
This indicator description explains a visual method for locating support and resistance from ZigZag turning points. Low pivots are used to mark support, while high pivots mark resistance. Users can adjust the analysis lookback and the ZigZag depth, deviation, and backstep settings to change which pivots are recognized and how minor fluctuations are filtered. Optional chart elements include the ZigZag line, labels, and levels that have already been broken.
The suggested reading is to look for areas where several pivot-derived levels converge, treating them as zones of interest. Labels identify level type and timeframe, and the tool is described as suitable for standard MetaTrader symbols and intraday through daily charts. The document explains display features rather than a trading rule: it gives no entry, exit, or risk-management method and presents no evidence that these levels predict future prices. Since ZigZag pivots depend on parameter choices and price history, the resulting levels are analytical reference points, not validated signals.
Key ideas
- Support is derived from ZigZag low pivots, while resistance is derived from high pivots.
- Depth, deviation, and backstep settings control which turning points are detected.
- Clusters of nearby levels can be used as chart areas for further analysis.
- Broken levels, labels, and the ZigZag line are optional display choices.
- The document provides no tested trading rules or 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.