ZigZag Swings with Dynamic Support, Resistance, and Trend Labels
Summary
This document describes a chart indicator that combines ZigZag swing points with projected support and resistance levels and labels for higher highs, higher lows, lower highs, and lower lows. It detects pivot highs and lows over a configurable lookback, tracks swing direction, and updates the latest segment when price makes a new extreme. Lines and labels can be enabled separately, with ATR-based spacing used to place labels around price bars.
The examples explain how the overlay may help read directional sequences, identify potential range zones, and notice when price crosses a projected level. The document provides implementation details and suggested parameter behavior, but no performance tests or evidence that the signals predict future returns. Like other ZigZag tools, recent pivots can change before confirmation, and results depend on the chosen lookback and timeframe. The displayed levels and classifications are structural aids rather than a standalone trading system.
Key ideas
- The indicator identifies swing pivots using a configurable lookback period.
- It connects pivots and extends the current segment when a new extreme forms in the same direction.
- Pivot lows and highs are used to draw projected support and resistance levels.
- Relative pivot positions produce higher high, higher low, lower high, and lower low labels.
- Recent ZigZag points may repaint until the pivot is confirmed.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.