Multi-Level Recursive Zigzag for ABC Pattern Detection and Trade Tracking

Summary

This indicator finds ABC price structures across several nested swing scales. It builds a base zigzag, then repeatedly filters its pivots to form higher levels, and searches each level for a three-pivot pattern where BC retraces 61.8% to 78.6% of AB. Optional conditions distinguish continuation, reversal, contracting, and expanding pivot combinations. Projected entry, target, and stop levels can use either the AB leg or BC leg as their reference, with an optional logarithmic calculation.

Patterns are tracked from pending through entry to completion, invalidation, or stop-out, and the panel tallies resolved outcomes by direction. The document explains chart markings and suggests using same-direction patterns at different levels as confluence. It provides implementation details and configurable parameters, but no independent performance study. The latest pivot may move before its swing is complete, making recent patterns provisional. The tally uses loaded chart history and omits trading costs, slippage, and overlapping exposure, so it is presented as a settings-comparison aid rather than strategy validation.

Key ideas

• The recursive zigzag creates successively larger swing levels from pivots at the preceding level.
• An ABC candidate qualifies when its BC leg retraces between 61.8% and 78.6% of AB.
• Optional pivot-type filters separate continuation, reversal, contracting, and expanding structures.
• Entry, target, and stop projections can be based on either the AB impulse or BC retracement.
• Recent pivots can change, while outcome tallies omit costs, slippage, and overlapping trades.

Tags

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