HeWhoMustNotBeNamed

Zigzag Trend/Divergence Detector

Pullbacks are always hardest part of the trade and when it happen, we struggle to make decision on whether to continue the trade and wait for recovery or cut losses. Similarly, when an instrument is trending well, it is often difficult decision to make if we want to take some profit off the table. This indicator is aimed to make these decisions easier by providing a combined opinion of sentiment based on trend and possible divergence.

⬜ Process

▶ Use any indicator to find trend bias. Here we are using simple supertrend
▶ Use any oscillator. I have added few inbuilt oscillators as option. Default used is RSI .
▶ Find divergence by using zigzag to detect pivot high/low of price and observing indicator movement difference between subsequent pivots in the same direction.
▶ Combine divregence type, divergence bias and trend bias to derive overall sentiment.

Complete details of all the possible combinations are present here along with table legend


⬜Chart Legend
C - Continuation
D - Divergence
H - Hidden Divergence
I - Indeterminate

⬜ Settings

Zigzag parameters : These let you chose zigzag properties. If you check "Use confirmed pivots", then unconfirmed pivot will be ignored in the table and in the chart
Oscillator parameters : Lets you select different oscillators and settings. Available oscillators involve
Trend bias : Supertrend is used for trend bias. Coloring option color candles in the direction of supertrend. More option for trend bias can be added in future.
Stats : Enables you to display history in tabular format.

Overview of settings present here:


⬜ Notes

  • Trend detection is done only with respect to previous pivot in the same direction. Hence, if chart has too many zigzags in short period, try increasing the zigzag length or chart timeframe. Similarly, if there is a steep trend, use lower timeframe charts to dig further.
  • Oscillators does not always make pivots at same bar as price. Due to this some the divergence calculation may not be correct. Hence visual inspection is always recommended.

⬜ Possible future enhancements
  • More options for trend bias
  • Enhance divergence calculation. Possible options include using oscillator based zigzag as primary or using close prices based zigzag instead of high/low.
  • Multi level zigzag option - Can be messy to include more than one zigzag . Option can be added to chose either Level1 or Level2 zigzags.
  • Alerts - Alerts can only be added for confirmed pivots - otherwise it will generate too many unwanted alerts. Will think about it :)




If I get time, I will try to make a video.
Versionshinweise: Added few things to settings
  • Option to draw zigzag on close prices (selected by default)
  • Option to show/hide divergence types.
  • Renamed BarIndex in stat table to Bar Time
  • Minor updates in layout

Versionshinweise: Minor calculation corrections
Versionshinweise: Added alerts!!


By default continuation and indeterminate are disabled for alerts. Note that, when not using confirmed pivots, we may get alerts on every bar as non confirmed pivots keep moving.

Alerts are configured using alert method instead of alertcondition. Hence, you will only see one option. Just need to select the indicator from alert dialog and press create:
Versionshinweise: Made the trend based on zigzag supertrend as this is more appropriate
Open-source Skript

Ganz im Sinne von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es verstehen und überprüfen können. Ein Hoch auf den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Publikation unterliegt den Hausregeln. Sie können das Skript den Favoriten hinzufügen, um es auf dem Chart zu verwenden.

Möchten Sie dieses Skript auf einem Chart verwenden?
Please PM me if you need access to any invite only scripts.

Join tradingview: https://www.tradingview.com/gopro/?share_your_love=sudh

Kommentare

500 Coins
+6 Antworten
100 Coins
+1 Antworten
Hi. How should we read the table on the right side up? How can it help us?
What is the best time to buy?

Thank u.
+3 Antworten
@CoNaN_TR, everything in the description.

Antworten
CoNaN_TR HeWhoMustNotBeNamed
@HeWhoMustNotBeNamed, Thank you bro. Can we solve repaint problem?
Antworten
@CoNaN_TR, what repaint you are seeing? Can you explain?
Antworten
thank you very much, master of the zigzags.
+2 Antworten
Super Sr"
+2 Antworten
@dgmoon, Thank you :)
Antworten
Thnx sir for update...
+1 Antworten