ZigZag on Parabolic

Category: market_structure, trend

A ZigZag indicator that uses the Parabolic SAR trend reversal logic (crossing the bar midpoint) to identify and plot price peaks and troughs.

Formula

\begin{cases} Mid_t = \frac{High_t + Low_t}{2} \\ Trend = \text{Up if } SAR_t < Mid_t \\ Trend = \text{Down if } SAR_t > Mid_t \\ Peak = \max(High) \text{ during Up trend} \\ Trough = \min(Low) \text{ during Down trend} \end{cases}

Inputs

• Step (default: 0.02)
• Maximum (default: 0.2)
• ExtremumsShift (default: ChartTime)
• History (default: 0)
• EnableNativeAlerts (default: false)

See signal primitives, usage in published strategies and more on WOBR StrategyVerse.