What is the Zig Zag indicator?
Zig Zag Pointer is a
powerful VertexFX client side VTL indicator that gives excellent entry and exit
signals based on Fractal patterns..
A fractal High pattern is a candle whose high is greater than the Highs of adjacent candles.
As well a fractal Low pattern is a candle whose Low is lower than the Lows of the akin candles. The idea behind fractal candles is that when a High is surrounded by candles with lower Highs, then there is a high probability that the market will change trend and turn bearish. Similarly, when the Low is enclitic by higher Lows, the price has stabilized and likely to stop falling. This signals a change from downtrend to uptrend.
How Zig Zag indicator works?
The Zig Zag Pointer can Determination these market turning points. At the beginning we identify all fractal Highs and fractal Lows, from the oldest to the newest.
Then, we ignore all fractal Highs that have a previous fractal High within DEPTH bars. Similarly we ignore all fractal Lows that have a previous fractal Low within the recent DEPTH bars.
This eliminates signals which are repetitive and generated by sideways movements in price. In the third step, we ignore all fractals Highs that are not above the previous fractal High by at least DEVIATION_POINTS points. Similarly, we ignore all fractal Lows that are not below the previous fractal Low by at least DEVIATION_POINTS points. This ensures that only strong trends, and breakouts are considered, and weak trends which failed to cross previous Highs or Lows are ignored.
To use Zig Zag indicator download it from here, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on the tree and select refresh or restart your client station and you will find under VTL local scripts in your client terminal.
You can check this video that talks about Zig Zag indicator: