Universal ZigZag Semaphore

Hi,

Please take a look at the UniZigZagSemaphore_v4, which is based on the universal ZigZag algorithm (see UniZigZagChannel) and allow bulid up to 4 ZigZags simultaneously.





Regards,
Igor

Hi Igorad,

Thanks a lot for this indicator.

Well ... this is some history of it

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3_Level_ZZ_Semafor indicator developed long time ago (attached).

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The description of this indicator can be found on mql4 forum here.

This is the other semaphore - improved by TRO ... but to say a true - I have no idea how the original old one differs from it ...

This is 3_Level_ZZ_Semafor indicator the Fibo Retracement & Fibo Expansion to confirm the Resistance.

And this is about how to use those kinds of indicators - written by Acekay

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I figured out 2 consistently porofitable ways to trade with semafores. In my opinion, the first method can be built into an EA, the second method - the one I use daily - is more profitable and far more complex and uses other indis as confirmation which I won't go into here. First method, which is rather simple - and simply logical - yields about 70 - 80% success rate.

Method 1 trading with semafores:

Here's what you do: Wait for a 3 semafore to print (doesn't matter if it's the highest high or lowest low of the trend). Any 3 semafore will do (any TF, although I prefer 5M TF - any currency pair, although I only trade EURUSD).
Now wait for a level one semafore to form (after the 3 semafore) in both up trend and down trend.
Once you have two level one semafores printed, you are ready to enter the trade when the first level 2 semafore exceeds the low or high of a level 1 semafore. Wait for level 2 semafore to surpass the level 1 semafore by at least 3 pips before entering the trade.
Example: in a down trend, level 2 will overtake level one semafore, and usually swing back up once more before reversing down again and keep going until it becomes a level 3 semafore, denoting that it's found a new lower level than the level 2 semafore (the opposite occurs for an up trend)
You can either exit the trade once a level 3 semafore prints, or you can install the ADX indi and watch it to see how strong the trend is and follow it for as long as you can. In a strong trend the 3 can reprint 3-4 times as it registers new highs/lows - even 6 or 7 times.
Once you have taken profit, you wait for the next 3 semafore to print and start the process all over again.

The logic behind this method is simple:

Level 1 semafore is the first new high/low registered after a 3 prints - this is a small movement.
WHat happens after level 1? A level 2 prints - which means a new high/low is registered. This is a larger movement of price.
Level 3 prints - this is the largest movement so far which means it is higher than the level 1 semafore so it has to be profitable.
If the level 2 semafore continues and becomes a level 3, all good and well, you are already in profit because you enter the trade the moment the level 2 semafore passes level 1 semafore by 3 pips.


The ONLY time when this system fails is on the rare occasion when the level 2 semafores surpasses the level 1 semafores on BOTH sides of the trend - up and down. Then you will be stopped out, or you can close the trade manually for a VERY small loss of a few pips.

Other deviations: In a strong trend a level 1 will turn into a level 2 and then a 3 in one movement, so you will always miss out on the big, sudden breakouts after a no 3 semafore has printed, but most of the trends are orderly affairs: 3 prints, then 1 9on both sides), then 2, then 3 again.

2 modifications were done to TROs modified 3LZZ indicator
1. a cpu.saver input that vastly reduces processing time, but only shows the most recent semaphores
2. since this was written with TROs drain the banks method in mind it also has a popup panel that lets you know if theres a sema on the current or previous candle... the idea was to leave it on H1 and watch for the panel. it can be turned off.

One big trouble i have with these Semafors is the redrawing or repainting (as the case may be) which they do.

3_Level_ZZ_Semafor_v2 600+ indicator is on this post. This version works with Metatrader 4 build 600 and above.

Igorad，

I got this error message when compiling this indicator on MT4 build670: