zigzag support&resistance levels

The zigzag support&resistance levels indicator identifies multi-level support and resistance zones based on filtered price swings. It provides a visual framework for spotting potential market reversals and trend structural points like higher highs or lower lows across different time horizons.

Usage

The tool can be used to identify key horizontal levels where price has historically reacted. Users can choose between two primary visual modes:

• Horizontal Levels: Draws dotted lines extending from ZigZag pivot points, marking clear support and resistance areas. These lines can be configured to extend indefinitely or expire once the price intersects them.
• Semafor Labels: Displays circle labels at pivot points, similar to classic semafor indicators, to highlight swing highs and lows without cluttering the chart with lines.

The indicator supports up to three concurrent ZigZag calculations (Depth 1, 2, and 3), allowing traders to view short-term and long-term market structures simultaneously. For example, the primary setting (red by default) typically identifies major trend shifts, while secondary and tertiary settings (green/blue) highlight minor pullbacks.

Details

The script utilizes a custom ZigZag logic based on depth and deviation settings. Depth determines the minimum number of bars required to validate a new high or low, while deviation ensures price has moved a significant enough distance to warrant a new pivot. By refactoring these concepts into horizontal levels, the indicator transforms point-in-time pivots into actionable price zones. When "Extend lines" is disabled, lines automatically terminate once price breaches the level, providing a dynamic view of "active" versus "broken" support and resistance.

Settings

General Setting

• Draw lines or just labels: Toggles between horizontal support/resistance lines and simple circle markers.
• Line count: Controls the maximum number of historical lines displayed on the chart.
• Extend lines: When enabled, lines extend to the right edge of the chart. When disabled, lines stop when price crosses them.

Zigzag Setting (1-3)

• Show first/second/third: Enables or disables the specific ZigZag layer.
• Depth: The minimum bar count for swing detection.
• Deviation: The minimum price change required to confirm a new pivot.
• Color: Customizes the visual color for the specific ZigZag layer's lines or labels.

FAQ

How do I use these levels for trading?

Levels can be used as potential targets for take-profits or as areas to look for reversal price action patterns.

Why do some lines disappear?

If "Extend lines" is unchecked, the indicator is designed to expire lines once the market price reaches those levels, indicating the level has been tested or broken.

How can I access zigzag support&resistance levels?

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