Using Zigzag Pivots to Plot Fibonacci Retracement Levels
Summary
This indicator combines Zigzag swing points with Fibonacci retracement levels to map possible support and resistance areas. Pivots can be identified either by a percentage move or by period highs and lows. The indicator tracks pivot values and direction, then draws the latest swing and retracement levels; options control whether past levels and levels for rising or falling swings are displayed. The example includes common retracement fractions between the two pivot extremes.
The document explains the calculation and visualization but supplies no market study, trading rules, or evidence that these levels forecast reversals. Zigzag pivots can shift as prices develop, so historical turning points may appear clearer after the fact than they were in real time. The plotted levels are therefore reference zones for technical analysis, not validated entry signals. Results will depend on the chosen pivot method and parameters, and the article does not assess sensitivity to those settings or test performance across markets.
Key ideas
- Zigzag pivots reduce smaller price movements to highlight larger swing highs and lows.
- Pivots can be defined by a percentage change or by highs and lows over a specified period.
- Fibonacci retracement levels are calculated between adjacent swing points and drawn as potential support or resistance zones.
- Display settings control whether historical levels and rising- or falling-swing levels are shown.
- The document provides no performance validation, and Zigzag pivots may change as new prices arrive.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.