Swing Chart - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

WD Gann was a famous trader who developed a variety of technical analysis tools and techniques. One such tool is the swing chart, which can be used to identify trends and trade on them. A swing chart is constructed by first comparing a bar chart to the previous bar chart, as shown below:

With such coloring of the bars, one can draw a zigzag with the peak color changing from green to red and the trough changing color from red to green .

Trading system:

The trading systems associated with this indicator (and ZigZag in general) are as follows:

Comparison to other zigzags:

When it comes to ZigZag for technical analysis, EAs and indicators, there are some desirable properties, which include:

The standard ZigZag draws beautifully shaped waves, but is known to be able to redraw itself. Therefore, it is less useful for trading than for analyzing past price series. This fast ZZ (ZigZag likes it) works by defining the retracement size and taking only the price into account. If set too high, many important peaks and troughs may be skipped, and if set too low, irrelevant peaks and troughs may appear. The Swingchart ZigZag can be seen as a midway point between these two, not redrawing itself but also being able to take dynamic price ranges into account. Its main advantage is that it finds all relevant peaks and valleys and can be used in other applications that require fine-grained peak/trough sorting.

Attachment download

📎 swingchart.mq5 (20.96 KB)

Source: MQL5 #16763