Supertrend Zone Pivot Point with zigzag fib

The [JL] Supertrend Zone Pivot Point with zigzag fib indicator provides a comprehensive trend analysis toolkit by combining a Supertrend-based zone with non-repainting Zigzag pivots and Fibonacci retracement/extension levels.

Usage

This tool is designed to identify trend direction and key reversal or continuation levels.

• Trend Analysis: The Supertrend component defines the primary trend direction. When the Supertrend is bullish (green), the script focuses on identifying the highest price points within that trend. Conversely, during a bearish Supertrend (red), it focuses on the lowest points.
• Pivot Identification: The non-repainting Zigzag logic marks high and low points. These labels appear only when the Supertrend direction changes, ensuring that the identified extremes are anchored to trend shifts.
• Fibonacci Levels: Fibonacci levels (0, 0.236, 0.382, 0.5, 0.618, 0.786, 1, and extensions) are automatically drawn based on the previous high and low pivot points. These levels serve as potential support or resistance areas.
• Premium/Discount Lines: The indicator includes optional ATR-based lines (Premium/Discount) that plot above or below the Supertrend to help identify overextended price action within the current trend.

Details

The script utilizes a specific logic where pivots are tied to Supertrend switches. Instead of standard fractal pivots, it looks for the highest high during a bullish period and the lowest low during a bearish period. This ensures that the Zigzag connections and subsequent Fibonacci calculations are based on significant trend-defined peaks and valleys. The "non-repainting" nature of the Zigzag is achieved by waiting for the Supertrend flip to finalize the previous trend's extreme point.

Settings

Show

• Show zigzag: Toggles the visibility of the lines connecting pivot highs and lows.
• Show fibonacci: Toggles the Fibonacci retracement and extension levels on the right side of the chart.
• Show supertrend: Toggles the display of the Supertrend line and its shaded trend zone.
• Show premium/discount line: Toggles the visibility of the ATR-offset lines used for identifying overextension.

Parameters

• ATR Length: Sets the lookback period for the Average True Range used in both the Supertrend and Premium/Discount calculations.
• Factor: The multiplier for the ATR to determine the Supertrend distance.
• Premium/Discount: The ATR multiplier used to plot the Premium/Discount lines relative to the Supertrend.

Text Color / Label Color

• Pivot High: Controls the text and label color for identified high pivots.
• Pivot Low: Controls the text and label color for identified low pivots.

FAQ

How do I interpret the Fibonacci levels?

The Fibonacci levels are calculated between the most recent finalized high and low pivots. They act as dynamic support and resistance zones that update whenever a new trend extreme is confirmed by a Supertrend flip.

Does the Zigzag repaint?

No, the Zigzag and pivots are designed to be non-repainting by anchoring their positions to trend changes. A pivot is only confirmed and labeled once the Supertrend direction has officially shifted.

How can I access the [JL] Supertrend Zone Pivot Point with zigzag fib?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.