The indicator for ProRealTime ZigZag Semaphore is an algorithm for detecting maxima and minima deriving from three different wavelengths of price oscillation. The points drawn late on the graph allow us to study different aspects that are very useful for technical analysis, and the study of strategies. The indicator is composed of different shape points that indicate the maximum and minimum of three different trends of different sizes, minor, intermediate and major. The identification of these points makes it possible to detect the tendency of each trend entered in the greater trend, supports and resistances and the reversal of the greater trend.
How does it work
In the indicator interface you can select the values of 3 variables:
- Deviation1 = Minor Trend, Red Light
- Deviation2 = Medium Trend, Yellow Light
- Deviation3 = Major Trend, Green Light.
The Red Light, indicates that the point detected is a short-term minor trend. The trader must consider the red light as a danger, since a minor trend could in a very short time change and be contrary to the strategy undertaken by the trader.
The Yellow Light indicates that the point detected is an intermediate trend, more stable than the smaller trend, but still unstable and dangerous.
The Green Light indicates that the point detected is a greater, more stable trend that can be considered support or resistance.
The stability of the surveyed points is a function of the values chosen in the variables, the more the chosen values have a long period and the more points will be incisive.
Advantages in using the “ZigZag Semaphore indicator”
- Easy to “Trade”;
- Compatible with all instruments;
- Compatible with all ordinary time units up to the tick;
- Compatible with Renko, Ticks, Kagi, Three Line Break, and more;
- Shows the market trends and levels, highlights the channels;
- Highlights the geometric points of possible figures in formation and facilitates their recognition;
- Individual adjustment based on graphs and market conditions;