ZigZag Percent Reversal - Helper - Draw Patterns - Part 1

The ZigZag Percent Reversal - Helper - Draw Patterns - Part 1 indicator identifies and visualizes common price patterns and market structures based on percentage-based zigzag reversals.

Usage

This script acts as a visual aid for traders looking to identify harmonic-style structures and classic price patterns automatically. By calculating pivots based on a minimum percentage reversal, the tool filters out market noise and connects significant highs and lows.

Users can leverage this tool to:

• Identify Harmonic Triangles and AB=CD patterns.
• Monitor "Taps" (2/3/4 Tap structures) which can signify support or resistance tests.
• Visualize trend direction through color-coded zigzag lines.

The indicator is highly customizable, allowing users to switch between a fixed percentage reversal or ATR-based volatility adjustments.

Details

The script utilizes a zigzag logic that calculates the required reversal distance dynamically. When the price moves against the current trend by the user-defined percentage (or ATR multiple), a new pivot is formed.

• Real Pivots: The script can anchor lines to the actual high/low price point or the bar where the reversal was confirmed.
• Pattern Logic: It tracks multiple historical pivots (from Point A to Point G) to calculate internal price ratios and time durations, which are then used to validate specific geometric patterns within a defined margin of error.

Settings

ZigZag Configuration

• Method to use for the zigzag reversal range: Select between a "MANUAL" percentage or various ATR-based calculations (ranging from 5 to 250 periods).
• Percent of last pivot price for zigzag reversal: The threshold required to trigger a trend change in manual mode.
• Multiplier to apply to ATR: A scaling factor used if an ATR method is selected.
• Show real zigzag pivots: Toggles between drawing lines to the exact pivot peak or the confirmation bar.

Pattern Selection

• Show Patterns: Master toggle for all visual pattern elements.
• Show Harmonic Triangle: Enables visualization of triangular harmonic structures.
• Show 2/3/4 Tap: Highlights consecutive tests of price levels.
• Show AB=CD: Draws the classic equal-measured move pattern.
• Margin of error (%): Adjusts the sensitivity/tolerance for pattern ratio validation.

Visuals

• Flip Gradient?: Reverses the color scheme of the gradients.
• Gradient theme: Selects the color palette (Red and Green, Red and Blue, Blue and White, or Rainbow).

FAQ

How do I access ZigZag Percent Reversal - Helper - Draw Patterns - Part 1?

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

What is the difference between Manual and ATR methods?

The Manual method uses a fixed percentage regardless of market conditions, while ATR methods adapt the zigzag sensitivity based on recent market volatility.

Can I use this for automated alerts?

Yes, the script is optimized for pivot-based detection which can be used to monitor for specific pattern completions.