ZigZag Fibonacci Retracements from Close-Based Swing Points

Summary

This indicator uses a platform ZigZag calculation on closing prices to identify swing tops and bottoms. From the latest detected top and bottom, it measures the price range and draws horizontal levels at the endpoints and at the 23.6%, 38.2%, 50%, and 61.8% retracements. The swing points are detected using a configurable percentage threshold; the displayed levels can be colored with RGB settings.

A DaysBefore setting limits whether older levels are plotted, and the description notes that the appropriate value depends on the ZigZag threshold and chart timeframe. The indicator is a visual reference for possible retracement areas, not a stated entry or exit system. No trading rules, performance tests, or evidence that the levels predict reversals are provided. Because ZigZag swing identification can change as prices evolve, the document offers no assurance that historical turning points would have been known in real time.

Key ideas

• The indicator finds swing points using a ZigZag calculation applied to closing prices.
• It measures the range between a detected top and bottom and plots standard Fibonacci retracement levels.
• A percentage threshold controls swing detection, while RGB inputs control line color.
• The DaysBefore setting filters which prior levels are drawn and depends on timeframe and threshold.
• The document gives no entry rules or evidence of predictive performance.

Tags

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