N Level ZigZag is a power tool to recognize a break through within any chart pattern, as shown in the following example.
The Ascending Triangle pattern is clearly shown as the picture below.
Because it is always easier to tell a break through from a chart of historical data.
It will be very profitable if you could create a long position right after the break through is spotted.
But can you do it in real time trading?
Let’s take a look at the picture below. It’s the same chart from the picture above, just 30 minutes earlier. Can you still recognize the pattern in this chart?
It will be much easier to detect the pattern and the break through if we have them highlighted.
In this example I only set 1 level of Zigzag, since this pattern is relatively easy to detect.
By using this indicator, you will see a signal right after the price break through in real-time.
The picture below shows when the signal appeared for the first time.
Since this is a dynamic indicator, if the price continues to go up the signal will be changed.
This explains why you didn’t see this signal in the first picture.
Please check the following two pictures, it will help you understand better how this indicator works.
The signal is still in the same position in the picture below.
The signal’s position is changed in the picture below as the price goes up.
You can say that this indicator repaints the last signal (actually it’s not repainting, it’s dynamic).
However, the signal is still very effective and efficient on its first appearance.