VIP price: $100 This is a permanent license.
The Auto ZigZag Pitchfork creates a trend channel out of the 3 ZigZag high low price anchor points by connecting the first 2 points to form the anchor, and the next 2 points to form the retracement handle. From the first point then a trendline is drawn through the 50% midpoint of the retracement handle, parallel lines start from the other 2 points forming the channel.
You will be able to choose from three different Pitchfork Calculation Method: ModifiedSchiff, Schiff, StandardPitchfork.
The Standard Pitchfork creates a trend channel out of the 3 user defined extreme price anchor points by connecting the first 2 points to form the anchor, and the next 2 points to form the retracement handle. From the first point then a trendline is drawn through the 50% midpoint of the retracement handle, parallel lines originating at the other 2 points forming the channel, while multiple further price levels could be set to allow for finer analysis.
In contrast the Schiff Pitchfork variant is constructed then by shifting the first anchor of the Standard Pitchfork one-half the vertical distance between the first 2 anchor points.
As further alternation the Modified Schiff Pitchfork variant is found by moving the first anchor to the midpoint of the original pitchfork's anchor handle, the trend-line connecting our first 2 anchor points.
It works on any timeframe and chart type that supports ZigZag, such as Renko, Heiken Ashi, Range and Tick. It uses the built-in version of Zigzag from NT8, but it doesn't plot ZigZag line.
There are two Zigzag deviation type: percentage and point. The parameter "deviation value" is the actual number used for deviation type.
When you use percentage as the deviation type, it means that the value difference between two adjacent Zigzag point must be greater than the input percentage which is the deviation value.
For example, if you used percentage deviation type and set deviation value to 0.1, then the value difference between each Zigzag point must greater than 0.1%. It also applies to all adjacent Zigzag points.
When you use point as the deviation type, it means that the value difference between two adjacent Zigzag point must be greater than the input point which is the deviation value. The value of Point is the actual price amount, if you set deviation value to 1, the value difference between each Zigzag point must greater than $1. It also applies to all adjacent Zigzag points.
For example, if you used percentage deviation type and set deviation value to 0.1, the value difference between two adjacent Zigzag points must greater than $0.1.
If "Use Recent ZigZag" is enabled, the indicator will use the most recent stable ZigZag, otherwise it will use the previous one. Please check the video below for a better understanding of how ZigZag Pitchfork plots on different inputs.
By adding two or more of the ZigZag Pitchfork indicator, we can observe the support and resistance levels from different angles.
After the price broke the resistance level of a downtrend, a new uptrend will be formed just like the chart shown in below.
The indicator may not work properly if there was not enough bars on the chart.
In general, 800 bars is good, but it also depends on the ZigZag Deviation value you set.
The bigger the Deviation value is the more bars you need to load.
You can change "bars to load" by following the pic below.
Copyright @ 2018 Patternsmart - All rights reserved
This website is for educational and informational purposes only and should not be considered a solicitation to buy or sell a futures contract or make any other type of investment decision. It's not recommended to use any single indicator as sole evaluation criteria. The companies and services listed on this website are not to be considered a recommendation and it is the reader's responsibility to evaluate any product, service, or company. patternsmart is not responsible for the accuracy or content of any product, service or company linked to on this website.
Futures trading contains substantial risk and is not for every investor.Please read the following risk disclosure before considering the trading of this product: Futures Risk Disclosure. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Trading stocks, options, futures and forex involves speculation, and the risk of loss can be substantial.Investor must consider all relevant risk factors, including their own personal financial situation, before trading. Trading foreign exchange on margin carries a high level of risk, as well as its own unique risk factors. Forex investments are subject to counter-party risk, as there is no central clearing organization for these transactions. Please read the following risk disclosure before considering the trading of this product: Forex Risk Disclosure. Spreads, Straddles, and other multiple-leg option strategies can entail substantial transaction costs, including multiple commissions, which may impact any potential return. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Prior to trading options, you should carefully read Characteristics and Risks of Standardized Options.
patternsmart.com will not be held liable for the loss of money or any damage caused from relying on the information on this site. Any investment decision you make in your self-directed account is solely your responsibility.