Enhanced Zigzag & Pivot Levels

vor 8 Stunden

### Description of the Script

This TradingView Pine Script combines **Zigzag Channels**, **Pivot Points**, **Missed Levels**, and a **Trend Filter** to provide a comprehensive market analysis tool. It is designed to help traders identify key market levels, trends, and potential reversals while maintaining clarity and simplicity.

### Components of the Script

1. **Zigzag Channels**:
- **Purpose**: Highlights significant price swings by connecting pivot highs and lows.
- **How It Works**:
- Uses a specified length (`zigzag_length`) to calculate significant highs and lows.
- Draws dynamic lines between consecutive highs and lows, helping visualize market structure and directional moves.
- **Visuals**: Zigzag lines in **orange** (or your chosen color).

2. **Pivot Points**:
- **Purpose**: Marks key turning points in the market (local highs and lows).
- **How It Works**:
- Identifies pivot highs and lows using `ta.pivothigh` and `ta.pivotlow` with the input `length`.
- Labels these points on the chart using upward (`▲`) or downward (`▼`) arrows.
- **Visuals**:
- Pivot highs are marked with **red labels**.
- Pivot lows are marked with **green labels**.

3. **Missed Levels**:
- **Purpose**: Highlights missed highs and lows that are lower than previous highs or higher than previous lows, which may signal missed opportunities or market inefficiencies.
- **How It Works**:
- Compares the current pivot point to the last zigzag extreme.
- If the current high is below the last high or the current low is above the last low, it labels the missed levels.
- **Visuals**: Missed levels are marked with **gray labels** labeled "Missed High" or "Missed Low."

4. **Trend Filter (SMA)**:
- **Purpose**: Provides a simple context for market direction based on a moving average.
- **How It Works**:
- Computes a Simple Moving Average (SMA) of the `close` price over a user-defined period (`sma_length`).
- Indicates an **uptrend** when the price is above the SMA and a **downtrend** when below.
- **Visuals**: SMA is plotted as a **blue line**.

### Inputs

- **Pivot Length** (`length`): Number of bars to the left and right used to identify pivot highs and lows.
- **Zigzag Length** (`zigzag_length`): Period for calculating zigzag channel points.
- **SMA Length** (`sma_length`): Period for the trend filter.
- Toggle options to show/hide:
- Pivot points
- Zigzag channels
- Missed levels
- Labels
- Customizable colors for:
- Pivot highs and lows
- Zigzag lines
- Missed levels
- Trend filter (SMA)

### How It Works

1. **Pivot Points Detection**:
- The script calculates pivot points using the specified `length`.
- If a new high or low is detected, it places a label at the bar corresponding to the pivot.

2. **Zigzag Line Plotting**:
- Lines are drawn dynamically to connect the most recent pivot points.
- These lines represent swings and give a clear view of market structure.

3. **Missed Levels Detection**:
- Compares each pivot high/low to the previous zigzag extreme.
- Labels missed levels with tooltips that show their exact values.

4. **Trend Confirmation**:
- Uses the SMA to provide context for the overall trend.
- Traders can use this to decide whether to prioritize long or short opportunities.

### Example Use Cases

1. **Trend Confirmation**:
- Use the SMA to identify the prevailing market trend.
- Trade in the direction of the trend (e.g., look for buying opportunities above the SMA).

2. **Swing Trading**:
- Use the zigzag lines to identify key swing points for entry or exit.

3. **Missed Opportunities**:
- Look for missed highs or lows to spot market inefficiencies or reversal zones.

4. **Support and Resistance**:
- Pivot points can act as potential support or resistance levels.

### Visual Example

- **Uptrend**:
- Price above the SMA (blue line).
- Zigzag lines showing higher highs and higher lows.
- Pivot highs and lows aligning with the trend.

- **Downtrend**:
- Price below the SMA.
- Zigzag lines showing lower highs and lower lows.
- Pivot points reinforcing the bearish structure.