Functional extension of the ZigZagLW indicator. It allows you to identify the emergence of a new trend, signaling the formation of a new shoulder of the indicator line of a given level. It is completely independent, that is, for correct operation, there is no need to have an activated ZigZagLW indicator.
To understand the logic of the indicator, let’s take a look at the screenshots that consistently show the conditions for signal formation. There is a ZigZagLW indicator on the chart, which displays the Short_term and Medium_term lines. Also on the chart there is an indicator presented here with the parameters term = Medium_term and SoundSignal = false. This means that the Medium_term line is being tracked.
In the first screenshot, we see the price level A, at the intersection of which the current price should form a new shoulder Medium_term of the ZigZagLW indicator and, accordingly, the addition should give a buy signal.
In the second screenshot, the condition described above is observed, but no signal is sent. The point is in the ZigZagLW calculation algorithm, it is calculated on the formed bars, which the last bar is not.
In the third screenshot, the bar was formed, a new shoulder Medium_term of the ZigZagLW indicator was formed, and the addition gave a buy signal near the current price.
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The fourth screenshot reflects the natural movement of the price.
In the following screenshots, we observe the formation of a sell signal.
The last screenshot shows the input parameters:
- Term-this parameter selects the ZigZagLW indicator line for tracking. It can take the following values:
- SignalSound-this parameter enables / disables the sound signal during the appearance of the buy or sell indicator signal.
This page provides a link to the Expert Advisor as an example of using the current indicator to build a mechanical trading system.
Note: there is a similar indicator on MQL4.