ZZ Color Retracement - MetaTrader 5용 지표

I have already proposed a simple algorithm for searching local Highs and Lows implemented in Simple ZigZag. The main difference of Simple ZigZag from the conventional one is the much more simple and fast algorithm, as well as the single parameter — typical correction depth.

The ZZ Color Retracement indicator is the development of the idea of automating analytical ZigZag-based constructions. In particular, the indicator detects significant impulse movement and colors them in blue. Short corrective movements are shown in red, while medium flat areas are painted in neutral gray.

The following inputs are used to adjust the indicator:

• Typical retracement size — is inherited from the parent indicator — Simple ZigZag.
• Moves averaging period — number of ZigZag movements used for calculating the "average movement".
• Percentage difference — the threshold ratio of the last ZigZag movement to the moving average pass. If the ratio exceeds 1 + parameter, the movement is considered to be impulse; if it is lower than 1 - parameter, the movement is considered to be corrective; if it is in the middle ([1 - parameter, 1 + parameter]), the movement is flat.

Now, that we have made ZigZag to detect impulse passes, our next step is to apply the Fibo grid.