ZigZag Indicator for MT5
- Indicators
- Eda Kaya
- Version: 1.6
ZigZag Indicator for MT5
The ZigZag Indicator is a valuable tool available in MetaTrader 5, designed to highlight the highs and lows on a price chart. By marking pivotal turning points in price—commonly referred to as Pivot Highs and Lows (HH-HL-LH-LL)—it simplifies the process of identifying price trends. In any price movement, consecutive peaks and troughs are formed. Understanding these patterns correctly is essential for recognizing the direction of the overall market trend or short-term fluctuations. Major Pivot Highs and Lows signify significant market reversals and the dominant trend, while Minor Pivot Highs and Lows point to smaller, short-term shifts.
Indicator Table
| Indicator Category | Support and Resistance – Levels - Pivot Points and Fractals |
| Platforms | MetaTrader 5 |
| Trading Skills | Beginner |
| Indicator Types | Reversal - Lagging |
| Timeframe | Multi-timeframe |
| Trading Style | All Styles |
| Trading Instruments | All Markets |
Overview
The ZigZag Indicator connects pivot high (High) and pivot low (Low) points based on price movements. Its primary role is to assist in analyzing price behavior and detecting classic chart patterns such as Head and Shoulders (H&SH), Double Tops, and Double Bottoms.
Major Pivot Points
For example, consider the S&P 500 index chart (US500) in the 5-minute timeframe. During an uptrend, the indicator highlights Major Pivot Lows (HL) and Major Pivot Highs (HH) as large, prominent markers, signaling critical price movements and trends.
Minor Pivot Points
On the NASDAQ index chart (NAS100) in the 30-minute timeframe, Minor Pivot Lows (HL-LL) and Minor Pivot Highs (HH-LH) are shown in smaller sizes. These minor points represent smaller price movements between two significant pivots, providing a detailed view of the price action.
Support and Resistance Levels
In the AUD/CAD currency pair chart (AUDCAD) on the 1-hour timeframe, the ZigZag Indicator identifies key support and resistance levels using the latest Major Pivot Highs and Lows. It also detects short-term support and resistance levels based on Minor Pivots, enabling traders to align these insights with their trading strategies.
Indicator Settings
- Display Settings: Fully customizable for user preference.
- Theme: Adjust the chart background settings.
- ZigZag Settings: Customize the ZigZag lines.
- Candles to Start Checking: Default set to 300 candles for calculations.
- Left/Right Pivot Check (Major): Set at 9 candles for detecting major pivots.
- Left/Right Pivot Check (Minor): Set at 3 candles for identifying minor pivots.
- Major ZigZag Lines: Enable to display major ZigZag lines.
- Major Labels (HH-HL-LL-LH): Enable to show major pivot texts.
- Minor ZigZag Lines: Enable to display minor ZigZag lines.
- Minor Labels (HH-HL-LL-LH): Enable to show minor pivot texts.
- Major Support/Resistance Lines: Enable to draw key support and resistance levels.
- Minor Support/Resistance Lines: Enable to display minor trend levels.
Note: You can hide or disable any of the settings using the "false" option if needed.
Summary
The ZigZag Indicator offers an efficient method for identifying trend reversals and price rotations on a chart. It eliminates the need for manual inspection, allowing traders to focus on implementing their strategies effectively by leveraging the Pivot Highs and Lows. This tool is especially useful for pinpointing key market shifts and fine-tuning trading decisions.
