This indicator was converted from MT4 and has had some additional features added by us, we have added the following:
What is The Zig-Zag Definition?
This version of the Zig-Zag indicator is nothing but trend lines that will connect the low and high prices of a symbol and thus provides visual confirmation of the highs and peaks in the market. You will find that this is a dynamic indicator and therefore the final high or low can be changed if a new high or a low is plotted in the market. It is best used as a tool rather than an indicator as it is used to filter out the small price movements in the market.
The Zig-zag indicator comes with the standard settings such as Depth, Deviation and Backstep and the default values are 12, 5 and 3.
What is The Fibonacci Extension Definition?
Fibonacci extensions are also more of a tool that traders can use to establish their profit targets or estimate how far a price may travel after a price retracement is finished and these extension levels are also possible areas where the price may reverse.
The extensions are drawn on a chart, marking price levels of possible importance. These levels are based on the Fibonacci ratios and as percentages, the size of the price move the indicator is being applied to. The Fibonacci extensions will show how far the next price wave could move following a retracement.
- Depth: The minimum number of price bars required where there is no secondary high or low.
- Deviation: The number of pips that pips can deviate above the previously plotted high or low for the Zig-zag indicator to re-change its highs and lows
- Backstep: The minimum amount of bars between which the highs and lows can be plotted.
Dynamic Creation of Fibonacci Levels
You will need to be aware that the Zig-Zag and Fibonacci levels are created dynamically, so they are redrawn as new price data is collected to show the next support and resistance levels for the price retracement.
How To Install The Indicator
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
* Manual trading only - source code not available.