PZ Multidiagonals MT5

This indicator connects past price points drawing diagonals and trend lines, which converge in the future creating hidden reversal points.

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• Find hidden reversal points
• Spot convergence zones easily
• Dense criss-cross zones are reversal points
• Configurable amount of lines and price points
• Configurable colors

How to use the indicator

The indicator draws several lines on the chart, and where many of these lines converge and criss-cross each other in the future, a potential reversal zone exists. It also draws trend-lines and channels as a by-product of its drawing logic, as well as confluence lines, which are drawn from old past prices to the current price, projecting the foreseeable short-term future price range.

• The price range projected by the confluence lines (blue lines) is the foreseeable short-term future price range.
• The diagonals drawn in the chart mean nothing, but when several lines are found together or crossing each other, there is a hidden reversal zone.

Inputs

• Period - minimum size in bars between alternative prices points iterated by the indicator. A higher period means price points will be more separated from each other.
• Price Points - amount of price points to select from the price history, to later connect them using lines from past to present.
• Ignored Points - it is possible to prevent the indicator from drawing diagonals using the latest price points to ascertain how accurate the indicator has been recently. By ignoring the last two price points, for example, you can see if the last two price reversals coincided with a past diagonal.
• Display Diagonals - display diagonals on the chart. A diagonal is drawn by connecting a past price point with another past price point.
• Depth to display - how many of the price points selected are connected to future price points. For example, if you choose to select 10 price points from the past and connect only 3 of them, the oldest 3 price points will be interconnected to the future, decreasing the line density.
• Line Color - choose the line color of the diagonal lines.
• Line Width - choose the line size of the diagonal lines.
• Display Confluences - display confluence lines on the chart. A confluence line is drawn by connecting an old price point with the current market price, and it is useful to guess the foreseeable short-term future price range.
• Line Color - choose the line color of the confluence lines.
• Line Width - choose the line size of the confluence lines.
  

Author

Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions