ZigZag Supertrend

22 jul 2021

Back to my favourite supertrend. But, this time on the basis of zigzag pivots.

This is similar to forming supertrend based on pivot high lows - but instead of using pivot poitns, we are using zigzag pivots here.

Zigzag is derived using the same method as this script:

But, have removed labels and display options of zigzag. Older lines are also immediately deleted so that it can work well in lower timeframes without any error. Number of zigzaglines to be kept in memory depends on the parameter History

WaitForConfirmation option when selected only considers the confirmed zigzaglines and will ignore present zigzag line which is forming. This is not going to make much difference as the present zigzag line will be always opposite to low or high it formed and hence will not affect the stop loss levels or reversals.

WaitForClose is for supertrend determination. When checked uses close prices. If unchecked uses highs and lows for supertrend direction update.

ATR parameters allow you to set an adjustment below pivot high lows. This is required because support and resistence are often zones rather than single point. Hence, adds bit more wiggle room for trend continuation and delays frequent reversals on pullbacks.

22 jul 2021

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