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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.
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