Using SMA Extremes to Draw Zigzag Trend Lines

Summary

This indicator builds a ZigZag-style line from turning points in a simple moving average (SMA). At SMA maximum points, it connects the corresponding high prices; at minimum points, it connects the corresponding low prices. The displayed line color distinguishes direction: red for rising segments and blue for falling segments. The SMA period is adjustable, and the example names a period of 44.

The description explains the plotted construction but gives no rules for entering or exiting trades, no performance evidence, and no guidance on selecting the SMA period. As with other indicators based on turning points, the text does not say whether past pivots can shift as new prices arrive. Treat it as a charting aid for visualizing swings rather than a validated standalone trading strategy.

Key ideas

• The indicator identifies turning points in a simple moving average.
• It links highs at SMA maxima and lows at SMA minima to create ZigZag-style segments.
• Rising segments are red, while falling segments are blue.
• The SMA period is an adjustable input, with 44 shown as an example.
• The description provides no entry rules, backtest results, or pivot stability details.

Tags

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