KS Zigzag Channel

KS Zigzag Channel

KS ZigZag Channels indicator is a MetaTrader 5 (MQL5) custom indicator.

It draws zigzag-style pivot lines connecting significant swing highs and lows, along with channel-like extremities (upper and lower deviation bands) around each zigzag segment. The goal is to filter out market noise, highlight the underlying trend structure, and provide dynamic support/resistance-like zones based on historical price deviation from the main zigzag line.

Core Logic & Detection Method

Unlike classic percentage- or point-based ZigZag indicators, this version uses a rolling window approach (controlled by the Length input, default = 100 bars):

• It tracks a state machine (g_os[] buffer: 0 = looking for potential top / upward leg, 1 = looking for potential bottom / downward leg).
• A new bottom pivot is confirmed when the close price Length bars ago drops below the lowest close in the last Length bars (after previously being in an "up" state).
• A new top pivot is confirmed when the close price Length bars ago rises above the highest close in the last Length bars (after previously being in a "down" state).
• This creates retrospective (backpainting / repainting) pivots — meaning historical pivot points can shift as new data arrives.

What is drawn on the chart

For each confirmed swing segment (between two consecutive pivots of opposite type):

• Mid line (solid, orange-ish by default = MidColor): connects the previous pivot price → current pivot price → This is the main ZigZag line.
• Upper extremity (dotted, red-ish = UpperColor): parallel line shifted upward by the maximum deviation observed during that segment → Maximum upward distance from any bar's high/close to the interpolated mid line.
• Lower extremity (dotted, blue = LowerColor): parallel line shifted downward by the maximum downward deviation → Maximum distance from the interpolated mid line down to any bar's low/close.

These three lines together form a channel around each historical zigzag leg.

• Small circles/arrows (dodger blue) mark the exact pivot points (highs/lows used).
• Optional price labels appear at pivots when ShowLabels = true.

Last segment — extension feature

When ExtendLast = true (default), the indicator extends the most recent channel forward to the current bar:

• It anchors from the last confirmed pivot of the same direction as the current leg.
• It calculates a linear interpolation from that anchor pivot price → current close.
• It then computes the max upward/downward deviation across all bars in the current leg so far.
• Draws extended mid + upper + lower lines (prefixed "KSZzE_") projecting to the right (ray = true).

This gives a dynamic, forward-projecting channel that traders often use to anticipate potential support/resistance or reversal zones in real time.

Main Inputs & Controls

• Length (100): lookback period — higher = fewer but more significant pivots
• ExtendLast (true): whether to project the unfinished leg forward
• ShowExt (true): show upper/lower deviation lines (the actual "channels")
• ShowLabels (true): display price labels at pivots
• Three customizable colors for upper/mid/lower lines

Typical Usage

• Identify major swing structure and trend direction
• Use the channels as dynamic support/resistance zones (price often reacts near the upper/lower bands)
• Apply Fibonacci, harmonic patterns, channels, or other drawing tools more easily between clear swing points
• Spot potential reversals when price breaks or rejects the extended channel in the live segment

Note: Because it is retrospective and recalculates pivots, historical lines can move slightly (repaint) — typical behavior for most ZigZag-family indicators. It is best used in combination with other confirming tools rather than in isolation for live entries.