Parabolic ZigZag

Parabolic ZigZag is a VTL Client Side VertexFX Indicator. It is a ZigZag indicator using Parabolic Stop and Reverse indicator for identification of swing highs and swing lows.

The Parabolic SAR indicator is used to pick the swing direction. When parabolic SAR is in buy mode, swing direction is upward, and vice versa. When SAR turn to buy mode from sell mode, new upswing is identified and lowest point when SAR is in sell mode was marked as the swing low, and an upswing line is drawn from that swing low.

The indicator plots the zigzag line and Fibonacci retracement levels for the last two swings. This is useful in identifying targets and entry levels based on retracement. The last four swing levels are also marked in the chart. ZigZag indicator can be used in identification of chart patterns. In the image attached a Double Top pattern is easily identified with the Parabolic ZigZag. The Fibonacci levels for the last swing can be used as target levels for this trade.

The ZigZag is useful in identifying complex chart patterns like Harmonic patterns, Wolfe waves etc. It can be used to identify waves in Elliot Wave analysis. 

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:ProgramDataVertexFX Client Terminals”Company name”VTL10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.