ZUP Pesavento Patterns: Matching ZigZag Retracements to Fibonacci Levels
Summary
This article describes how the ZUP indicator identifies Pesavento-style patterns from the ratios between successive ZigZag swings. It calculates a retracement, compares it with a selected set of Fibonacci ratios, and displays a recognized level when the difference is within a configurable tolerance, Delta. Ratios outside that tolerance can instead be shown as measured values with distinct styling. The author explains display settings for lines, labels, bar counts, and time or price comparisons, and catalogs standard and alternative ratio sets associated with several pattern systems.
The broader discussion surveys ZUP chart tools, including Fibonacci levels, fans, arcs and expansions, Andrews' Pitchfork tools, and additional channel and level features. Examples illustrate how a market turn may occur near a Fibonacci ratio, but the article offers no systematic performance study establishing predictive value. Its guidance is primarily about indicator interpretation and configuration; selected levels, tolerance choices, and ZigZag turning points affect what patterns appear, and the described chart examples should not be taken as evidence of a reliable trading edge.
Key ideas
- The indicator compares ratios of consecutive ZigZag swings with a configurable set of Fibonacci levels.
- A tolerance parameter determines when a measured retracement is displayed as a recognized level.
- ZUP supports multiple ratio sets and options for displaying swing lines, labels, and timing information.
- Chart examples illustrate the tool's interpretation but do not establish that the patterns predict profitable trades.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.