ZigZag and SR: Dynamic Swing Analysis with Support and Resistance

1) Introduction

The ZigZag indicator is a classic tool to filter out minor price fluctuations and highlight major swing points. The version presented here, ZigZag and SR, goes one step further by combining the swing structure with automatic support and resistance levels, as well as labels for trend classification.

This makes it particularly useful for traders who want a clean, structural view of price action without being distracted by noise.

2) What does “ZigZag and SR” add?

While a standard ZigZag only connects pivot highs and lows, this enhanced version introduces:

Dynamic support and resistance levels (green/red dotted lines).
Automatic trend labeling: Higher High (HH), Higher Low (HL), Lower High (LH), Lower Low (LL).
Customizable visualization: the user can enable or disable the ZigZag lines, support/resistance, and labels.
ATR-based positioning of labels to avoid overlap with price bars.

These features provide an intuitive chart overlay that helps traders quickly assess trend direction and key zones of interest.

3) How it works (step by step)

a) Pivot detection

The algorithm scans for pivot highs (highest[prd](high)) and pivot lows (lowest[prd](low)) over a user-defined lookback period (prd).

b) Direction of movement

Once a pivot is identified, the indicator determines the direction of the swing:

Uptrend segment (dir = 1) when a pivot high is confirmed.
Downtrend segment (dir = -1) when a pivot low is confirmed.

A variable tracks changes of direction (dirchanged) to ensure the ZigZag only updates when a genuine swing reversal occurs.

c) ZigZag construction with arrays

Arrays ($zigzag, $zigzagidx, $dir) are used to store pivot levels, their bar indices, and direction.
When a new pivot is confirmed:

If the trend has changed, a new segment is added.
If the trend continues, the last segment is updated to extend to the new extreme.

This ensures the indicator always reflects the most relevant market swings.

d) Dynamic support and resistance

For every confirmed pivot, the indicator projects horizontal dotted lines forward in time:

Green for support (pivot low).
Red for resistance (pivot high).

These lines dynamically extend until a new structure point invalidates them.

e) HH, HL, LH, LL classification

Based on the relative position of new pivots compared to previous ones, the code labels swings as:

HH (Higher High) or HL (Higher Low) in uptrends.
LH (Lower High) or LL (Lower Low) in downtrends.

To avoid clutter, labels are shifted up or down using ATR(14) as a margin.

f) Efficient rendering with `islastbarupdate`

To optimize performance, the drawing routines are executed only when the last bar updates, preventing unnecessary redrawing across all candles.

4) Parameters and recommended settings

prd (default = 15): Defines the sensitivity of pivot detection.
- Higher values → fewer swings, only major moves.
- Lower values → more swings, captures smaller fluctuations.
showSR (default = 1): Enables or disables the support/resistance dotted lines.
showLabels (default = 1): Toggles the HH/HL/LH/LL labels.
showZZ (default = 1): Toggles the ZigZag connecting lines.

These options give full flexibility: the user can display only the ZigZag, only support/resistance, or the complete setup.

5) Reading the chart: practical cases

Trending markets: The sequence of HH-HL or LL-LH clearly shows the dominant direction. Support and resistance levels confirm continuation or possible breakout points.
Range-bound markets: The ZigZag alternates between highs and lows of similar magnitude, highlighting horizontal zones of equilibrium.
Breakouts: When a support or resistance dotted line is breached, traders can quickly spot the transition to a new structural phase.

This makes the tool adaptable for both trend-following strategies and mean-reversion setups.

6) Limitations and best practices

Repainting nature: As with all ZigZag indicators, the latest swing may repaint until a pivot is fully confirmed. This is not a bug but a characteristic of ZigZag logic.
Choosing prd wisely:
- Use larger values on higher timeframes to capture meaningful structure.
- Use smaller values on intraday charts for short-term swing recognition.
Timeframe sensitivity: The indicator adapts to any timeframe but behaves best when aligned with your trading horizon.

By understanding these nuances, traders can avoid common pitfalls and integrate the tool effectively into their workflow.

7) Code

//------------------------------------//
//PRC_ZigZag and SR
//version = 0
//03.12.2024
//Iván González @ www.prorealcode.com
//Sharing ProRealTime knowledge
//------------------------------------//
// Inputs
//------------------------------------//
prd=15
showSR=1 //Show Support and Resistance//Boolean// 0 means false 1 means True
showLabels=1 //Boolean// 0 means false 1 means True
showZZ=1 //Boolean// 0 means false 1 means True
atr=averagetruerange[14](close)
//------------------------------------//
// Calculate Pivot High and Low
//------------------------------------//
ph = high=highest[prd](high)
pl = low=lowest[prd](low)
//------------------------------------//
// Calculate Direction
//------------------------------------//
if ph and pl=0 then
   dir=1
elsif pl and ph=0 then
   dir=-1
else
   dir=dir
endif
dirchanged=dir<>dir[1]
//------------------------------------//
// Calculate ZizZag levels and x
//------------------------------------//
if ph or pl then
   if dirchanged then
      if dir=1 then
         $zigzag[t+1]=highest[prd](high)
         $zigzagidx[t+1]=barindex
         $dir[t+1]=1
         t=t+1
      elsif dir=-1 then
         $zigzag[t+1]=lowest[prd](low)
         $zigzagidx[t+1]=barindex
         $dir[t+1]=-1
         t=t+1
      endif
   else
      if dir=1 and highest[prd](high)> $zigzag[t] then
         $zigzag[t]=highest[prd](high)
         $zigzagidx[t]=barindex
      elsif dir=-1 and lowest[prd](low)< $zigzag[t] then
         $zigzag[t]=lowest[prd](low)
         $zigzagidx[t]=barindex
      endif
   endif
endif
//------------------------------------//
// Draw ZigZag and Levels
//------------------------------------//
$zigzag[0]=undefined
$zigzagidx[0]=undefined
if islastbarupdate then
   if showZZ then
      //Last ZigZag
      drawsegment($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],$zigzagidx[t],$zigzag[t])
   endif
   if showSR and $dir[t]=1 then
      drawsegment($zigzagidx[t],$zigzag[t],barindex,$zigzag[t])style(dottedline,3)coloured("green")
      drawsegment($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],barindex,$zigzag[max(0,t-1)])style(dottedline,3)coloured("red")
      if $zigzag[t]<$zigzag[t-2] then
         drawtext("HL",$zigzagidx[t],$zigzag[t]+0.5*atr)coloured("green")
      else
         drawtext("HH",$zigzagidx[t],$zigzag[t]+0.5*atr)coloured("green")
      endif
   elsif showSR and $dir[t]=-1 then
      drawsegment($zigzagidx[t],$zigzag[t],barindex,$zigzag[t])style(dottedline,3)coloured("red")
      drawsegment($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],barindex,$zigzag[max(0,t-1)])style(dottedline,3)coloured("green")
      if $zigzag[t]<$zigzag[t-2] then
         drawtext("LL",$zigzagidx[t],$zigzag[t]-0.5*atr)coloured("red")
      else
         drawtext("LH",$zigzagidx[t],$zigzag[t]-0.5*atr)coloured("red")
      endif
   endif
   if showLabels then
      drawpoint($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],2)coloured("blue",100)
      drawpoint($zigzagidx[t],$zigzag[t],2)coloured("blue",100)
   endif
   
   //Draw all ZigZag
   for i=t-1 downto 3 do
      if showZZ then
         drawsegment($zigzagidx[max(0,i-1)],$zigzag[max(0,i-1)],$zigzagidx[i],$zigzag[i])
      endif
      if showSR and $dir[i]=1 then
         drawsegment($zigzagidx[i],$zigzag[i],$zigzagidx[i+1],$zigzag[i])style(dottedline,3)coloured("green")
         drawsegment($zigzagidx[max(0,i-1)],$zigzag[max(0,i-1)],$zigzagidx[i],$zigzag[max(0,i-1)])style(dottedline,3)coloured("red")
      elsif showSR and $dir[i]=-1 then
         drawsegment($zigzagidx[i],$zigzag[i],$zigzagidx[i+1],$zigzag[i])style(dottedline,3)coloured("red")
         drawsegment($zigzagidx[max(0,i-1)],$zigzag[max(0,i-1)],$zigzagidx[i],$zigzag[max(0,i-1)])style(dottedline,3)coloured("green")
      endif
      
      if showLabels and $dir[i]=-1 and $zigzag[i]>$zigzag[i-2] then
         drawtext("LH",$zigzagidx[i],$zigzag[i]-0.5*atr)coloured("red")
      elsif showLabels and $dir[i]=-1 and $zigzag[i]<=$zigzag[i-2] then
         drawtext("LL",$zigzagidx[i],$zigzag[i]-0.5*atr)coloured("red")
      elsif showLabels and $dir[i]=1 and $zigzag[i]>$zigzag[i-2] then
         drawtext("HH",$zigzagidx[i],$zigzag[i]+0.5*atr)coloured("green")
      elsif showLabels and $dir[i]=1 and $zigzag[i]<=$zigzag[i-2] then
         drawtext("HL",$zigzagidx[i],$zigzag[i]+0.5*atr)coloured("green")
      endif
   next
endif
//------------------------------------//
return

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//------------------------------------//

//PRC_ZigZag and SR

//version = 0

//03.12.2024

//Iván González @ www.prorealcode.com

//Sharing ProRealTime knowledge

//------------------------------------//

// Inputs

//------------------------------------//

prd=15

showSR=1 //Show Support and Resistance//Boolean// 0 means false 1 means True

showLabels=1 //Boolean// 0 means false 1 means True

showZZ=1 //Boolean// 0 means false 1 means True

atr=averagetruerange[14](close)

//------------------------------------//

// Calculate Pivot High and Low

//------------------------------------//

ph = high=highest[prd](high)

pl = low=lowest[prd](low)

//------------------------------------//

// Calculate Direction

//------------------------------------//

if ph and pl=0 then

dir=1

elsif pl and ph=0 then

dir=-1

else

dir=dir

endif

dirchanged=dir<>dir[1]

//------------------------------------//

// Calculate ZizZag levels and x

//------------------------------------//

if ph or pl then

if dirchanged then

if dir=1 then

$zigzag[t+1]=highest[prd](high)

$zigzagidx[t+1]=barindex

$dir[t+1]=1

t=t+1

elsif dir=-1 then

$zigzag[t+1]=lowest[prd](low)

$zigzagidx[t+1]=barindex

$dir[t+1]=-1

t=t+1

endif

else

if dir=1 and highest[prd](high)> $zigzag[t] then

$zigzag[t]=highest[prd](high)

$zigzagidx[t]=barindex

elsif dir=-1 and lowest[prd](low)< $zigzag[t] then

$zigzag[t]=lowest[prd](low)

$zigzagidx[t]=barindex

endif

//------------------------------------//

// Draw ZigZag and Levels

//------------------------------------//

$zigzag[0]=undefined

$zigzagidx[0]=undefined

if islastbarupdate then

if showZZ then

//Last ZigZag

drawsegment($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],$zigzagidx[t],$zigzag[t])

endif

if showSR and $dir[t]=1 then

drawsegment($zigzagidx[t],$zigzag[t],barindex,$zigzag[t])style(dottedline,3)coloured("green")

drawsegment($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],barindex,$zigzag[max(0,t-1)])style(dottedline,3)coloured("red")

if $zigzag[t]<$zigzag[t-2] then

drawtext("HL",$zigzagidx[t],$zigzag[t]+0.5*atr)coloured("green")

else

drawtext("HH",$zigzagidx[t],$zigzag[t]+0.5*atr)coloured("green")

endif

elsif showSR and $dir[t]=-1 then

drawsegment($zigzagidx[t],$zigzag[t],barindex,$zigzag[t])style(dottedline,3)coloured("red")

drawsegment($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],barindex,$zigzag[max(0,t-1)])style(dottedline,3)coloured("green")

if $zigzag[t]<$zigzag[t-2] then

drawtext("LL",$zigzagidx[t],$zigzag[t]-0.5*atr)coloured("red")

else

drawtext("LH",$zigzagidx[t],$zigzag[t]-0.5*atr)coloured("red")

endif

if showLabels then

drawpoint($zigzagidx[max(0,t-1)],$zigzag[max(0,t-1)],2)coloured("blue",100)

drawpoint($zigzagidx[t],$zigzag[t],2)coloured("blue",100)

endif

//Draw all ZigZag

for i=t-1 downto 3 do

if showZZ then

drawsegment($zigzagidx[max(0,i-1)],$zigzag[max(0,i-1)],$zigzagidx[i],$zigzag[i])

endif

if showSR and $dir[i]=1 then

drawsegment($zigzagidx[i],$zigzag[i],$zigzagidx[i+1],$zigzag[i])style(dottedline,3)coloured("green")

drawsegment($zigzagidx[max(0,i-1)],$zigzag[max(0,i-1)],$zigzagidx[i],$zigzag[max(0,i-1)])style(dottedline,3)coloured("red")

elsif showSR and $dir[i]=-1 then

drawsegment($zigzagidx[i],$zigzag[i],$zigzagidx[i+1],$zigzag[i])style(dottedline,3)coloured("red")

drawsegment($zigzagidx[max(0,i-1)],$zigzag[max(0,i-1)],$zigzagidx[i],$zigzag[max(0,i-1)])style(dottedline,3)coloured("green")

endif

if showLabels and $dir[i]=-1 and $zigzag[i]>$zigzag[i-2] then

drawtext("LH",$zigzagidx[i],$zigzag[i]-0.5*atr)coloured("red")

elsif showLabels and $dir[i]=-1 and $zigzag[i]<=$zigzag[i-2] then

drawtext("LL",$zigzagidx[i],$zigzag[i]-0.5*atr)coloured("red")

elsif showLabels and $dir[i]=1 and $zigzag[i]>$zigzag[i-2] then

drawtext("HH",$zigzagidx[i],$zigzag[i]+0.5*atr)coloured("green")

elsif showLabels and $dir[i]=1 and $zigzag[i]<=$zigzag[i-2] then

drawtext("HL",$zigzagidx[i],$zigzag[i]+0.5*atr)coloured("green")

endif

//------------------------------------//

return

support and resistance swing trading zigzag

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NicoGB67 • 44 days ago #
Excelente Iván!

NicoGB67 • 44 days ago #
En mi modesta opinión de como entiendo este complicado mundo del trading, este indicador que has publicado es muy bueno para poder entrar en impulsos o correcciones y si se pudiera mejorar puliendo o reforzando sería casi perfecto, dejando claro que no existe el indicador perfecto, gracias por tus trabajos.
- Iván • 43 days ago #
  Me alegro que sea útil el indicador. Pulir/reforzar, eso ya lo dejo para vosotros 🙂

xpe74 • 42 days ago #
Hello, really nice and working (nearly) perfectly well. Quick questions about the code . What means “zigzagidx”. I understand zigzag but not with IDX. Same question for T . what is the value behind T. I also have 1 question about your code line 90 for i=t-1 downto 3 do, you are introducing a looping function but why value 3?
- Iván • 42 days ago #
  Hi, thanks!
  1) zigzagidx is the array that stores the bar index (barindex) of each detected pivot. It allows us to know exactly where (in time) the pivot occurred, so we can draw the segments correctly on the chart.
  2) t is simply a counter. Every time a new ZigZag point (HH, HL, LH or LL) is detected, t is incremented by 1 and used as the index to store the ZigZag values and their positions in the arrays:
  3) As for the for i = t-1 downto 3 do, we use 3 as the minimum value because the code compares current values to i-2 (for example: $zigzag[i] > $zigzag[i-2]). To avoid accessing a negative or undefined index, we stop the loop at 3.

xpe74 • 42 days ago #
Thanks a lot ..

xpe74 • 42 days ago #
was it converted as a trading strategy?
- Iván • 42 days ago #
  no it wasn’t

xpe74 • 42 days ago #
could be interesting to do so as visually it works well ….

xpe74 • 41 days ago #
Hi ivan, still working on your indicator. Is there a way (as i’m not a coder) to integrate in your code , a formula allowing to show on graph ( as a kind of timestamp on 1st bar) , when the pivot started (LL/LH/HH/HL) ……… thanks for your help

Ciccarelli Franco Che cosa sono quei numeri a destra di Sell power e Buy power?

Iván d) Buy vs. Sell Power Over the last length candles, the script counts: Buy Power: ba...

Sofitech Hello Ivan is it possible to have an histogram version giving +1 when you have a green arrow...

roccafragius Hi Ivan sorry another question, in order to create a bot that open the trade, I'm tryng to c...

roccafragius ////////////////////////////////////////// 0825-liquidity-test //--------------------------...

freddy382 Hello Ivan, I tested the indicator, which is great, but I only get the volume display for Bi...

geroniman merci Ivan, super indicatuer. Les cours vont souvent toucher 50% des zones vertes ou rouges....

Iván Pour ajouter une ligne supplémentaire, il suffit de créer une nouvelle variable, par exemple...

Maurizio A. excellent indicateur ! comment puis-je modifier le code pour afficher uniquement les dernier...

Iván Hola. El comportamiento es normal porque el último fibo es provisional por lo tanto se puede...

Edelmiro Mis felicitaciones por este indicador que, como el resto de indicadores cumple sobradamente ...

Iván gracias a ti Edelmiro por tus palabras!

Regisnew Bonjour Ivan serait il possible de proposer un screener pour détecter les zones de support v...

bembel242 Hello Ivan ! A belated HNY ! I know late ! Quick question on theis great indicator plse. I u...

gp38super Wow! This is GOLD! Great job!

Iván Hi You should delete from the indicator code all drawing functions and all variables not us...

Iván I've created a screener to show [longcondition or shortcondition]

Chrisinobi Hallo Ivan, Danke das ist Perfekt !! Kannst du bitte in der Screener-Bibliothek die itf. hoc...

gidien Thanks for the hint. I think i know now, why this happen. The "settings" block was added by ...

LucasBest Thank you for sharing your work, both original and very disconcerting. When I went through t...

gidien Hello LucasBest, thanks for your comment. Point 1: Yes your are right. The Zigzag ve...

steffen_burat Hello Nicolas, I have a cumulative histogram update problem, the indicator often updates ...

taklause Hello Nicolas, if I try to use your indicator in a trading system, the error on prc pops up ...

Gio56 Bonjour Nicolas J'ai le meme souci que steffen , l'indicateur ne cumule qu'après avoir redé...

effegi A good alternative solution, even I had thought of the variant that uses high and low (proba...

Seb did you automate that 1-2-3 strategy? how is that working for you?

effegi Not yet, I'm busy developing other strategies/indicators at the moment, but it's on my to-do...

StephFor //ind1 = ZigZagPoint[2*averagetruerange[200]](close) avr = 3 //3% ind1 = ZigZag[avr](close...

Manu L. @Steph un grand merci pour ton aide mais :-( J'ai copier le code tel quel mais cependant j...

AlphaMauss Je n'ai pas réussi à faire fonctionner l'indicateur avec le code fourni en commentaire sur P...

1) Introduction

2) What does “ZigZag and SR” add?

3) How it works (step by step)

a) Pivot detection

b) Direction of movement

c) ZigZag construction with arrays

d) Dynamic support and resistance

e) HH, HL, LH, LL classification

f) Efficient rendering with `islastbarupdate`

4) Parameters and recommended settings

5) Reading the chart: practical cases

6) Limitations and best practices

7) Code

Share this

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ZigZag and SR: Dynamic Swing Analysis with Support and Resistance

1) Introduction

2) What does “ZigZag and SR” add?

3) How it works (step by step)

a) Pivot detection

b) Direction of movement

c) ZigZag construction with arrays

d) Dynamic support and resistance

e) HH, HL, LH, LL classification

f) Efficient rendering with islastbarupdate

4) Parameters and recommended settings

5) Reading the chart: practical cases

6) Limitations and best practices

7) Code

Share this

Likes

f) Efficient rendering with `islastbarupdate`