Multi-Level ZigZag Swings and Markttechnik Pattern Counts

Summary

This indicator builds five nested ZigZag levels: the first uses a configurable lookback, and each higher level is derived from turning points in the level below. It is designed to condense price action into progressively larger swings and can optionally display labels, a legend, highlighted levels, or Markttechnik-style 1-2-3 counts associated with Dow Theory-like swing analysis.

The indicator also tracks several comparisons between successive moves. These include retracement size relative to the previous move, the duration of a move relative to the prior move’s duration, and the size of a move relative to the previous move in the same direction. Settings control the lookback, calculation history, treatment of same-bar highs or lows, and whether to force a turning point when one has not appeared. The document explains features and settings but supplies no validation, trading rules, or performance evidence. ZigZag turning points can change as new prices arrive, so the descriptions alone do not establish predictive value.

Key ideas

• The indicator constructs five ZigZag levels, with each higher level derived from the previous one’s turning points.
• It can calculate retracement size, move duration, and move size relative to prior swings.
• Optional Markttechnik-style counts label swing points using a 1-2-3 pattern approach.
• Settings control lookback, calculation history, and how the indicator handles missing or same-bar turning points.
• The document provides no evidence that the plotted patterns predict future prices or improve trading results.

Tags

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