ZigZag Turning Points Calculated from Heikin Ashi Highs and Lows

Summary

This indicator description explains a ZigZag variant that calculates turning points from the high and low values of Heikin Ashi candles. The Heikin Ashi period is configurable, and users can choose whether the Heikin Ashi candles themselves are displayed. The direction of the ZigZag changes with the corresponding Heikin Ashi candle direction, linking the swing display to the smoothed candle series.

Examples are mentioned for period settings of one and two, including a view with the candles enabled, but the text supplies no quantitative performance test or trading rules. It advises against periods above five, without explaining the basis for that recommendation. As with other ZigZag tools, the description should be treated as a way to visualize price swings rather than evidence of predictive power; the text does not discuss repainting, lag, or how to turn the plotted swings into executable signals.

Key ideas

• The indicator derives ZigZag turning points from Heikin Ashi highs and lows.
• Its Heikin Ashi calculation period can be configured, and candle display can be switched on or off.
• The described examples use periods of one and two, while the author advises against larger settings.
• The document provides no performance evidence or rules for converting the plotted swings into trades.

Tags

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