ZZ Color Retracement - MetaTrader 5 Script | Grid EA Download - MT4/MT5 Resources

ZZ Color Retracement based on the simple ZigZag indicator. In addition to the functionality of the underlying indicator, Color Retracement also analyzes the length of wave movements, highlighting longer impulse movements in blue and shorter retracements in red. Medium sized waves are highlighted in gray.

Automation of many graphical structures, including simple graphical structures such as channels, trends (higher highs/lower lows) or Fibonacci grids, requires the definition of "fine movements" where price moves from a local minimum to a local maximum and from a local maximum to a local minimum. The ZigZag indicator is most effective at finding such moves and finding local highs and lows.

I have proposed a simple algorithm to search for local highs and lows in a simple zigzag . The main difference is that compared with the traditional algorithm, the simple zigzag correction algorithm is simpler and faster, and has a single parameter - the typical correction depth.

The ZZ Color Retracement Indicator is a development based on the concept of automated analysis of the ZigZag construction. In particular, the indicator detects significant pulse motion and colors it blue. Short-term corrective movements are shown in red, while medium flat areas are plotted in neutral gray.

The following inputs are used to adjust the indicator:

Now that we have used ZigZag to detect pulse passes, the next step is to apply a Fibonacci grid.

Attachment download

📎 simplezzcolorretracement.mq5 (7.32 KB)

Source: MQL5 #16019