Simple Zig Zag
This software component for MetaTrader 5 is built to enhance the capabilities of your trading environment. This technical indicator acts as a specialized analysis tool designed to visualize market data. It helps traders identify emerging trends, momentum shifts, and key support or resistance levels by plotting statistical calculations directly onto price charts.
How to Setup and Use Simple Zig Zag
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
Description & Settings
Automation of many graphical constructions, including simple ones like channels, trends (higher highs / lower lows) or Fibo grids, requires defining a "refined movement", i.e. price passing from local minimum to local maximum and from local maximum to local minimum.
This task is efficiently solved by ZigZag indicator included in the standard MetaTrader delivery set.
However, conventional ZigZag has a number of drawbacks.
In particular:
ZigZag always repaints which is inconvenient when applying it in trading algorithms,
the indicator algorithm includes several nested loops which can significantly slow down a ZigZag-based EA optimization,
fine tuning of the indicator is performed using three parameters, which significantly lengthens the optimization process, and given the fact that changing one parameter changes the effect of others, the optimization process may not find a stable extremum at all.
Having all this in mind, I have developed a much simpler algorithm of defining refined movements.
The proposed algorithm
does not contain embedded loops. All calculations are performed as soon as new price data becomes available,
does not repaint itself (e.g., a detected reversal will not turn into something else over time),
contains a single parameter — standard pass length (set to be different on different timeframes for more convenience).
The indicator solves the task visually by highlighting local maximums and minimums and plotting refined passes between them.
This tool allows you to develop a simple EA based on Fibo corrections. One of the provided screenshots displays clearly recognizable trend and correction movements which is critical for developing an EA using Fibo corrections.
