Can't deny that I am obsessed with zigzags. Been doing some crazy experiments with it and have many more in pipeline. I believe zigzag can be used to derive better trend following methods. Here is an attempt to visualize zigzag as candlesticks. Next steps probably to derive moving average, atr (although there was an attempt of AZR made earlier) and probably supertrend too ;)
Input parameters include ZigzagLength (to calculate zigzag) and CandleSize (number of zigzag pivots in each candle)
CandleSize can be 3 or more. Every time we collect pivots which are equal to CandleSize, we derive one candle. And when we derive a candle, we remove all old pivots except the last one. Becauase, the last pivot acts as open to the next bar and is required.
Body of the candle tells the start and end zigzag pivot in the range. And Wicks signify highest and lowest pivots in the range. High and Low wicks are placed at the pivot where high and lows are formed. Hence, you can see them at different positions each time.
Thanks to @RicardoSantos for suggesting boxes for candles - while I was trying to achieve this with plotbar
Release Notes
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Ok, slight changes. Realized after publishing that making it in the same overlay with added transparency can be more useful.
@amitnandi, Use it like any candlestick. Thats the idea at least.
RozaniGhani-RG
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You truly obsess with zig zag or rather possessed.
tyler8910
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Very cool!
lcasalpty
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Have you ever seen mike mbox indicators, check his website, you will find this idicator too, plus ZIG ZAG
Trendoscope
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@lcasalpty, haven't seen so far. Just had a glance and looks like he charges 1500 for this?
lcasalpty
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@Trendoscope, yes unfourtanely they are not free, I have them for NT8, but I what to move to Tradingview, check his youtube chanel, a lot of information and you can see the Indicators working.
Trendoscope
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@lcasalpty, well, I developed these indicators with my own ideas. I will refrain from watching the videos if the ideas are similar. Also, I am not so keen on reverse engineering a paid indicator.