The indicator displays renko bars on a chart and uses them to create ZigZag indicator - trend lines connecting local price movement Highs and Lows. The indicator, in turn, is used to create AB=CD displaying potential price reversal points.
Renko is a non-trivial price display method. Instead of displaying each bar within a time interval, only the bars where the price moved a certain number of points are shown. Renko bars do not depend on a time interval, therefore the indicator works on any timeframe without losing its efficiency.
In this version, ZigZag is built based on the two parameters - zzDev (minimum deviation in percentage of the previous movement) and zzBack (minimum number of renko bars opposite to the previous movement).
AB=CD pattern is formed by ZigZag patterns according to the specified ratio. Sample extreme points naming is shown on the screenshot. Only the minimum ratios of BC/AB segments are set in the parameters. CD/BC ratio is considered equal to the inverse AB/BC one. CD proportions scatter (CD_scatter) has been added to the parameters to increase the number of recognized patterns. For example, if the calculated value is CD=1, while CD_scatter=0.2, the indicator operates with the data CD_min=0.8 and CD_max=1.2. The recognized pattern is displayed on the chart as two triangles and arrows of the appropriate direction and is accompanied by a pop-up window alert, email and push notifications. The indicator also generates EventChartCustom custom event for using signals for automating the trading process. The event generated by the indicator can be processed by the EA in the OnChartEvent function. The indicator passes the following parameters to the event handler: id - identifier; lparan - distance from D to C in points; dparam - A price; sparam - text message. Only the last formed bullish and bearish patterns are displayed.
- RenkoBar - renko bar size in points (automatically re-calculated for five-digit quotes);
- CountBars - number of renko bars displayed on the chart;
- bearColor - bearish renko bar color;
- bullColor - bullish renko bar color;
- hideBars - flag of hiding standard bars from the chart;
- zzDev - deviation from the previous movement in percentage;
- zzBack - deviation from the previous movement in the number of renko bars;
- zzColor - ZigZag line color;
- zzWidth - ZigZag line width;
- BС_min, BС_max - BС/AB ratio settings;
- CD_scatter - CD/BC ratio scatter;
- patternBullColor - bullish pattern color;
- patternBearColor - bearish pattern color;
- signalBuyColor - buy arrow color;
- signalSellColor - sell arrow color;
- useAlert - enable pop-up notifications;
- useMail - enable email notifications;
- useNotification - enable push notifications;
- CustomEventBuy - buy custom event indicator (0 - disabled);
- CustomEventSell - sell custom event indicator (0 - disabled).