ZigZag Fibo

ZigZag Fibo is a powerful VertexFX client side VTL indicator that provides the natural support and resistance levels based on Fibonacci numbers.The concept of this indicator is based upon Fractals candles and Fibonacci levels. The Fibonacci levels are drawn from 0% to 100% with intermediate levels at 9.0%, 14.6%, 23.6%, 38.2%, 50.0%, 61.8%, 76.4%, 85.4%. Further Fibonacci expansion levels are drawn at 161.8% and 261.8%.

When the price is trading within the Fibonacci range of 0 to 100%, the intermediate levels can be used for support and resistance. The critical levels are 23.6%, 50% and 76.4% – these are the levels where the price will face the maximum support and resistance. When the price breakouts out above (or below) the 100% range, the probability of the price reaching the next target of 161.8% is very high. At first step we identify all fractal Highs and fractal Lows, from the oldest to the most recent. In second step, we ignore all fractal Highs that have a previous fractal High within DEPTH bars. Similarly we ignore all fractal Lows that have a previous fractal Low within the recent DEPTH bars. This eliminates signals which are repetitive and generated by sideways movements in price.

In third step, we ignore all fractals Highs that are not above the previous fractal High by at least DEVIATION_POINTS . Similarly, we ignore all fractal Lows that are not below the previous fractal Low by atleast DEVIATION_POINTS . This ensures that only strong trends, and breakouts are considered, and weak trends which failed to cross previous Highs or Lows are ignored. The Fibonacci level is drawn from the recent Fractal High (or Low) to the previous Fractal Low (or High).

Buy: This indicator does not provide BUY signals.
Sell: This indicator does not provide SELL signals.

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.