ZigZag Fractals for Support, Resistance, and Trend-Colored Candles

Summary

This indicator uses a ZigZag series to identify turning points that are treated as fractal support and resistance. It detects a potential upward turn when the ZigZag value rises after a prior decline, and a downward turn when it falls after a prior rise. An upward arrow is drawn below a bullish candle at an upward turn; a downward arrow is drawn above a bearish candle at a downward turn. Candle colors are assigned from the most recently detected turn.

The description suggests using the indicator on a higher timeframe to infer trend, but provides no trading rules, validation, or results. The code applies a short ATR-based offset to arrow placement and uses a custom close series for drawing text. Since ZigZag turning points can depend on later price movement, signals may be revised or appear with delay; the document does not discuss this limitation or define how higher-timeframe signals should be synchronized with entries.

Key ideas

• The indicator uses ZigZag turning points as candidate support and resistance locations.
• Bullish candles at upward turns receive an upward marker, while bearish candles at downward turns receive a downward marker.
• The latest detected turning point determines the candle color used to indicate directional context.
• The author proposes reading trend from a higher timeframe but gives no strategy evaluation or performance evidence.

Tags

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