Measuring Price Distance from a ZigZag Pivot with an Oscillator

Summary

This indicator plots a colored histogram of the closing price’s percentage distance from a selected ZigZag pivot. It calculates the difference between the close and the pivot price, divides by that pivot price, and scales the result by 100. Positive and negative values therefore express the direction and relative size of the move from the reference point.

The indicator exposes ZigZag depth, deviation, and backstep settings, along with a pivot-point selector. When the selected pivot is zero, it uses the nearest earlier ZigZag break or the end of the last projected segment as its reference. The description gives the calculation and parameter behavior, but no trading rules, performance tests, or guidance on choosing settings. As with ZigZag-based tools generally, pivot identification can change as later price data arrives, so historical signals may not represent real-time behavior.

Key ideas

• The oscillator expresses closing price distance from a ZigZag pivot as a percentage.
• Its value depends on the selected pivot price and three ZigZag configuration parameters.
• A zero pivot selection uses the nearest prior break or the end of the last ray.
• The page describes an indicator, not a complete trading strategy or tested signal.

Tags

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