HZZM 外汇EA

This is an adaptive ZigZag based on modification of HZZ indicator (original source code is available in this article).

Most important changes in this version:

• two additional indicator buffers added for zigzag evolution monitoring – they show cross signs at points where zigzag direction first changes;
• zigzag range (H) autodetection on day by day basis;
• time-dependent adjustment of zigzag range.

Parameters:

• H – zigzag range in points; this parameter is similar to original HZZ, but it can take 0 value – in this case HZZM calculates current daily range of price and use it as H (it changes on every bar); default value – 0;
• MinBars – number of bars to process; default value – 0 means all bars;
• SaveData – enable/disable output of zigzag data to a file; default value – false;
• Original – enable/disable original algorithm of HZZ; default value – false, that is the modified version is active; when it is true, the result is the same as original HZZ;

When Original is false, HZZM works in adaptive mode. It adjusts H according to number of bars passed since the last extremum. The larger the distance, the larger correction for H is made – H is decreased in a non-linear way. This means that longer (in time) zigzag edges can alter direction in shorter price move than usual.

The combination of H equal to 0 and the on-the-fly range adjustment produce an effect of adaptive processing similar to using several zigzags with different settings, when every set is suitable for specific market conditions.