Description
This indicator detects price reversals in a zig-zag pattern using only price action and a Donchian channel. It is built specifically for short-term trading and does not repaint or backpaint any signals. It is a great tool for experienced traders who want to improve the timing of their trades.
- Very easy to use
- Works well on any timeframe
- Shows suggested stop-loss and take-profit levels
- Analyzes its own performance and quality
- Sends alerts by email, sound, or on-screen
The indicator is based on price breakouts and congestion zones that vary in length. It uses only price action to choose trades and reacts quickly to market changes.
- Shows the potential profit of past signals
- Tracks performance with detailed stats
- Highlights and counts losing trades
- Signals do not repaint or change later
This tool helps intraday traders avoid missing reversal trades. However, not every price reversal is a good trade. You must still use your own judgment to decide which signals to follow and which to skip.
How to Interpret the Stats
The indicator measures how well its own signals perform and shows this data on the chart. Each trade is analyzed and the full results are shown in the top-left corner of the screen. These stats help you adjust and optimize the indicator settings for any trading symbol and timeframe. Every chart and instrument can have different ideal settings.
- Maximum Favorable Excursion (MFE): The best possible price move in your favor for each trade.
- Maximum Adverse Excursion (MAE): The worst price move against you for each trade.
- Average Absolute Expectancy (AAE): The average potential of each trade, calculated as MFE minus MAE. It tells you the real quality of your entry.
- Losing Trades: Studying past losing trades helps you avoid weak patterns in the future.
On the chart, each trade shows dotted lines and price labels for the best and worst outcomes. All results are included in the performance stats shown in the top-left corner. You can use this data to fine-tune the settings of the indicator for each symbol and timeframe.
Input Parameters
- Range – Minimum number of bars needed to break through to create a valid signal. Use a higher number on lower timeframes. For example, use 5 on monthly charts, and at least 20–25 on 1-hour charts.
- Filter – Separates signals using a Donchian channel and a multiplier of the price range. A higher filter means fewer signals, but often better quality and higher favorable movement.
- Max History Bars – Number of past candles to analyze when the indicator loads. Lower this number to make it load faster.
- Dashboard – Turn the multi-timeframe dashboard on or off.
- Statistics – Enable or disable the stats display. Use these stats to test and improve the indicator settings. Try small changes until you find the best accuracy and performance.
- Display Boxes – Show or hide the colored boxes around the breakout area.
- Fill Boxes – Choose whether the inside of the breakout box is filled with color.
- Trade Analysis – Show or hide the analysis of individual trades on the chart.
- Alerts – Turn on or off alerts by display, sound, email, or push notification when breakouts occurr
