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Price Percentage Zigzag for Time-Independent Trend Structure

Article MQL5 code base
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Summary

This indicator changes its zigzag leg when price moves by a specified percentage from an extremum. Because the reversal rule depends on price rather than elapsed time or chart timeframe, it can present swings consistently across securities without tying them to a particular bar interval. The description contrasts this percentage input with an earlier scale-based implementation.

The suggested use is to help assess trend structure, in a manner comparable to a Renko chart, and potentially pair it with a momentum oscillator when considering entries. The document does not give performance tests, parameter guidance, or detailed entry and exit rules. It explicitly cautions against treating the zigzag alone as a trade decision tool, and the indicator’s turning points depend on the selected percentage threshold.

Key ideas

  • The zigzag marks reversals using percentage moves from price extremums.
  • Its structure is independent of timeframes and elapsed time.
  • The percentage input is intended to work across different securities.
  • The indicator may help assess trend structure, but the document advises against using it alone for trading decisions.
  • A momentum oscillator is suggested as a possible companion for entry timing.

Tags

Technical indicatorsTrend followingMomentum

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