Zigzag Pivots for Trend, Momentum Divergence, and Sentiment

Summary

This indicator compares price swing pivots from a Zigzag process with pivots in a selectable oscillator. Available sources include common momentum measures and normalized positions within Bollinger, Keltner, Donchian, or adaptive Donchian channels; an external series can also be supplied. The comparison classifies pivot relationships as continuation, regular divergence, hidden divergence, or indeterminate, then combines that classification with a trend bias to label market sentiment.

An ATR-based, pivot-history trend stop provides the trend context and can be plotted as a Supertrend-like guide. Users can choose close-based or high/low pivots, wait for pivot confirmation, display a recent-pivot statistics table, and configure alerts. The source code describes the indicator’s logic but supplies no standalone trading rules, predictive validation, or performance results. Pivot confirmation affects signal timing, and unconfirmed swing points may change as new bars arrive, so classifications should not be treated as proven forecasts.

Key ideas

• The indicator compares price pivots with pivots in a chosen oscillator or channel-position measure.
• It classifies pivot relationships into continuation, divergence, hidden divergence, or indeterminate states.
• An ATR-adjusted trend measure adds directional context to the divergence classification.
• Pivot confirmation settings affect when signals appear and how stable they are.
• The document provides no evidence that the classifications predict profitable trades.

Tags

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