Mapping ZigZag Price Swings with Volume-at-Price and Fibonacci Levels

Summary

This indicator combines ZigZag swing identification with a volume-by-price calculation. For each detected price sequence, it divides the range into price bands, totals volume associated with closes in each band, and marks the highest-volume band along with low-volume bands. The author presents these levels as potential support and resistance areas and as a way to inspect where participation is concentrated within a swing.

The indicator also plots Fibonacci retracement levels across the swing and optional extensions beyond its endpoints, framing them as possible areas for further price movement or regression. These displays are descriptive tools; the document provides no backtest, quantified accuracy, or evidence that the levels predict future prices. ZigZag points can be confirmed after later bars arrive, so signals may be delayed or appear differently in real time. The author explicitly invites work on entry, exit, stop-loss, and trailing-stop rules, leaving those strategy decisions unresolved.

Key ideas

• The indicator segments each ZigZag price swing into bands and estimates volume within each band.
• The most and least active price bands are highlighted as possible support or resistance areas.
• Fibonacci retracements and extensions are plotted relative to each detected swing.
• The document does not define validated entry, exit, or stop rules and provides no performance results.
• ZigZag swing points may be confirmed with delay, limiting real-time interpretation.

Tags

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