Indicator ZigZag Oscillator displays in a separate chart window a colored histogram of the Close price distance from the ZigZag pivot point (break).
It has four configurable parameters:
- ZigZag Depth - parameter ZigZag Depth
- ZigZag Deviation - parameter ZigZag Deviation
- ZigZag Backstep - parameter ZigZag Backstep
- ZigZag pivot point - pivot point to start calculating the distance from
Calculations:
ZZOsc = 100 * (Close - LastZZ) / LastZZ
where:
LastZZ - ZigZag price on the pivot point
If the pivot point is equal to zero, then the counting will be started from the nearest left ZigZag break or from the end of its last ray.
Fig. 1. ZigZag Oscillator + ZigZag, ZigZag pivot point = 0
Fig. 2. ZigZag Oscillator + ZigZag, ZigZag pivot point = 1
Fig. 3. ZigZag Oscillator + ZigZag, ZigZag pivot point = 2
