What is the ZigZag Dual Buffer Indicator?
The ZigZag Dual Buffer Indicator is a powerful tool designed for MetaTrader 4 that helps traders pinpoint high and low points on price charts. This indicator employs dual buffers to keep track of these critical price levels. A point is marked as a new high or low when it surpasses the high or low of N previous bars, with Bars being the parameter that defines how many earlier bars to consider. The default setting is 2.
How Does It Work?
At its core, the ZigZag Indicator operates on the fractal concept. This means a point is deemed high if it exceeds the highs of the previous two bars and low if it drops below the lows of those same bars. What's great about this indicator is that it doesn’t hold off for the next two bars to confirm its readings—it acts in real-time!
Addressing the Outside Bar Issue
This indicator also tackles the common problem of the outside bar, a concern highlighted by Aleksandr Chugunov in his article on Professional ZigZag. Take a look at Figure 2 below. It effectively scans back to the last node to identify if there’s a point that either exceeds or falls short of the current point. If such a point exists, it will be set as the new ZigZag node.
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