Using Four ZigZag Lengths to Mark Swing Turning Points

Summary

This indicator description explains a ZigZag-based method for marking potential swing highs and lows at four evaluation lengths. It places colored, nested symbols at detected turning points instead of drawing connecting lines. The four user-configurable lengths default to 21, 40, 60, and 72, while the marker’s colors and rings distinguish the level. Optional chart controls toggle price labels and the display of all marks.

The author says the implementation adapts a simpler semaphore-style ZigZag algorithm and runs in the strategy tester, unlike the original version. They report that its historical marks appear consistent with the original, including flaws they observed, but give no formal comparison, trading results, or evidence of predictive value. Since ZigZag swing points depend on subsequent price movement and can be revised as new bars arrive, the marks should not be treated as confirmed real-time signals without checking the algorithm’s timing behavior. The description focuses on implementation and visualization rather than a complete trading strategy.

Key ideas

• The indicator marks swing locations at four independently configurable ZigZag lengths.
• Nested colors and circles show which of the four detection levels produced a mark.
• The display can show price labels and can toggle all markers on or off.
• The author reports strategy-tester compatibility but acknowledges that the underlying algorithm has flaws.
• The description offers no evidence that the marks predict profitable trades.

Tags

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