Another ZigZag, yes... I believe though this concerns another angle/principle, therefore I wanted to share
How does it work?
Given:
source for level breach -> close
X breaches -> 3
Let's say this is the latest found 'lower low' (LL - blue dot under bar):
This bar has been triggered because 3 bars closed under low of previous 'trigger bar' (TB ) The high and low of this new TB will act as triggers (aqua blue lines, seen in image above)
Then there are 2 options: - again 3 bars closes under the latest TB , in that case the TB moves to that new LL. - 3 bars closes higher than the high of previous TB
The high and low of this new TB act again as trigger
If a new TB LL/HH is found, the script checks previous LL/HH and searches the highest/lowest point in between. If necessary, the temporary highest/lowest will be adjusted:
Another example:
The last 2 points can change (repaint). Yellow coloured lines/labels are set and won't change anymore.
Concluded: In case of these settings: *source for level breach -> close *X breaches -> 3 once a new TB is found, the high and low act as trigger lines - when 3 bars closes under that low, a new LL is found, this will be the new TB - when 3 bars closes above that high, a new HH is found, this will be the new TB and so on...
Settings:
source for level breach -> close or high/low - H/L
X breaches -> 1 -> 10
line style -> solid, dotted, dashed
show level breaches -> new found TB (blue/lime coloured)
show Support/Resistance (lines at the right)
repaint warning can be removed
show labels/lines
This ZZ can be used for Harmonic patterns, Trend evaluation, support/resistance,...
In this script, I also used new features - text_font_family = font.family_monospace -> link - display=display.pane -> link