ZigZag Percent Reversal - Forecast - patterns - labels

The [KK] ZigZag Percent Reversal - Forecast - patterns - labels indicator identifies significant price reversals based on a percentage threshold, providing a clean visual representation of market structure and potential future movements. It combines classic ZigZag logic with statistical forecasting and automated pattern detection to help traders identify key swing points and harmonic formations.

Usage

The indicator can be used to filter out minor price fluctuations and focus on significant trend changes. Users can choose between a manual percentage reversal or an ATR-based calculation for more dynamic sensitivity.

Examples of usage include:

• Trend Analysis: Use the ZigZag lines to identify higher highs and lower lows.
• Pattern Trading: Enable labels to automatically detect formations like Head and Shoulders, ABCD, Bat, Butterfly, and Gartley patterns.
• Forecasting: Utilize the projection features to visualize potential target areas based on historical ZigZag statistics.
• Slope Information: Monitor the price differential, time differentials, and experimental angle information to gauge the strength of a move.

Details

The script executes by tracking the highest and lowest prices since the last confirmed pivot. A reversal is only confirmed when price closes beyond a specific range calculated from the previous pivot. This range is determined by the "percent" setting or dynamically via ATR. Once a new pivot is established, the script calculates statistical data (averages, deviations, and maximums) for the price and time of the segments to generate forecast projections.

Settings

• Method to use for the zigzag reversal range: Select between "MANUAL" percentage or various ATR-based multipliers (e.g., ATR010 * X).
• Percent of last pivot price for zigzag reversal: The percentage movement required to trigger a new ZigZag leg when using the MANUAL method.
• Multiplier to apply to ATR if applicable: Adjusts the sensitivity when using an ATR-based reversal method.
• Show real zigzag pivots: Toggles whether pivots are plotted at their actual historical time or at the confirmation bar.
• Show zigzag lines: Enables or disables the drawing of lines connecting the pivots.
• Show price labels on zigzag: Displays the price value at each pivot point.
• Show Patterns: Master toggle for the various harmonic and geometric pattern detectors (ABCD, Bat, Gartley, etc.).
• Show projections forecast of zigzag: Enables statistical projections of where the next pivot may occur.
• Show projections forecast Bounds: Draws the bounding boxes for the projected reversal areas.

FAQ

• How can I change the sensitivity of the reversals? You can either increase the "Percent" value for manual settings or select a longer ATR period (e.g., ATR250) and increase the multiplier for more significant swings.
• What patterns does this indicator detect? It detects a wide range of patterns including Harmonic Triangles, 2/3/4 Taps, AB=CD, Bat, Butterfly, Gartley, Crab, Shark, 5-0, Wolfe Waves, and Head and Shoulders.
• How do I access this script? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.