The best way to use 3 level zigzag indicator for Ninjatrader NT

The best way to use 3 level zigzag indicator

First of all, you need to know how this indicator works.

When you set the parameters as the following:
The indicator will only calculate the percentage change without using ATR.

The indicator will plot '1' when the price is 0.15% higher/lower from last pivot point '1'.

If you set ZigZag_percentage to 0.3 and LevelSymbol to '2nd', it will show '2nd' when the price is 0.3% higher/lower from last pivot point '2nd'.

If you have already watched the videos which I posted on Youtube, you may think this indicator always repaints.

In fact, a repainting indicator is something like Polnomial Regression Channel (PRC).
It repaints bars from a given range, it can be 50 or 100 bars.
https://www.youtube.com/watch?v=oy2nc2y4ks0

 

Actually, the word dynamic is more precise to describe the situation of ZZ. The zigzag indicator only "repaint" the last bar if it's also qualified the percent change condition.
If it doesn't "repaint" the last bar, you will see tons of signals on chart.

In my opinion, the 3 level ZZ (or 3 level ZZ Semafor) indicator is a very sharp weapon for traders who understand chart patterns.

 

If you only want to follow the signals to swing trade, you won't get any good results.

Let's see some examples.

The above is a MegaPhone pattern, the price raised to a new High after the '3rd' is confirmed.

The above is also a Asymmetric MegaPhone pattern, indicating a bullish reversal trend.
Note: there is a small "Rectangle pattern" before it break through the resistance.

The above is a Symmetrical Triangle pattern, it often predicts the breakout direction.
There is a support at the last '1', the price reversed and continued the uptrend to a new High.

The above is also a Symmetrical Triangle pattern, unlike the previous one, this one break through the support, and continued the downtrend to a lower LOW.

The above can be considered as either Channel Up pattern or Rising Wedge pattern.

Both patterns are defined by two lines drawn through peaks and bottoms, the latter headed upward.
When the price crossover the resistance trendline, it indicates a upward direction.

Since this indicator highlights all pivot highs and pivot lows, and you can also define different percentages for as many levels as you want, it will be easier for you to filter out any false and unwanted  pattern or formation.