Hey fellow traders! Today, let’s dive into a cool tool that can really amp up your trading game—the Trendline Zigzag Indicator for MetaTrader 5. This isn’t just any indicator; it’s a modern twist on the classic Donchian channel.
So, how does it work? This indicator identifies pivots using a zigzag structure along with graphical markers. These pivots are drawn straight from how the channel behaves. You’ll notice that a pivot gets triggered when the channel flattens out, creating a connection point for the next zigzag leg. To ensure that we're not falling for weak or insignificant pivots, there’s a handy depth parameter that confirms the channel’s flatness before a new pivot is marked. The logic behind the pivots is kept straightforward, with no forward corrections, which means you might experience a bit of lag due to the confirmation requirement.
Now, let’s make this indicator even more beneficial for live trading. The current “live” leg is displayed as a dynamic trendline stretching from the most recent confirmed pivot to the current price extreme. This trendline stays relevant until a new pivot comes into play, which means you’ll have a constantly updating cycle of trendlines. This not only improves your visual interpretation of the channel but also gives you an analytical edge.
The main goal of this indicator is to watch how price action interacts with the trendline. Is it bouncing off the trendline, showing respect, or is it breaking through and signaling a potential shift in direction? Keep in mind that this tool offers qualitative insights rather than exact signals, so it’s not meant to predict precise market movements or be your sole decision-making tool.
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Just a quick note: A new version (1.02) has been uploaded, featuring a complete code overhaul along with input options for leg correction and the ability to enable or disable the trendline. Happy trading!
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