ZigZag Support and Resistance Zones with Confirmation and Breakout Transitions
Summary
This indicator description explains how ZigZag swing highs and lows can define resistance and support areas. A configurable confirmation delay is used to validate pivots before zones are drawn, aiming to reduce repainting. Instead of drawing thin levels, the indicator creates rectangular zones whose width is normalized against average historical price movement, so the areas adjust to prevailing volatility.
It also describes transition rules based on candle closes: a support zone broken to the downside can become resistance, while a resistance zone broken to the upside can become support. Users may disable this conversion and remove broken zones instead. A dashboard summarizes recent ZigZag legs as a bullish versus bearish momentum ratio to indicate whether conditions appear directional or choppy. The description provides no backtest, signal performance, or parameter guidance. Confirming pivots necessarily delays their recognition, and the market-bias ratio is presented as a summary rather than a validated forecast.
Key ideas
- ZigZag swing highs and lows provide candidate resistance and support areas.
- A confirmation delay is intended to limit repainting but means pivots are validated after they form.
- Zone width is adjusted using average historical price movement.
- A close through support or resistance can convert the zone into the opposite role.
- A dashboard compares recent bullish and bearish ZigZag legs without providing tested predictive evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.