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Introduction Everybody who takes working on financial markets seriously, start creation of their individual trading systems earlier or later. The author of this present article created ZUP, ZigZag Universal with Pesavento Patterns, as a result of this search. The MetaQuotes Software Corp. suggested me writing an article about this indicator. This present article is the first attempt to do it. In this and in the successive articles, I will describe the features of indicator ZUP, version 60 (ZUP_v60). It happened so that Data Centers through that the author accessed to financial markets were using the MetaTrader 4 platform. The standard indicators embedded in the trading terminal did not provide necessary analyses of the market with necessary efficiency. I prefer to arrange the place where I am rather than to find another one. Therefore, I had to do so that I would be able to make all necessary market analyses using the MetaTrader 4 Client Terminal, which allows creation of one's own indicators using its embedded language, MQL4.

Pesavento Patterns ( http://www.ensignsoftware.com/tips/tradingtips35.htm#Pesavento ) On the chart below, the ZigZag breaks are joint by dotted lines. A number is given in the middle of each dotted line. These are the dotted lines with numbers near them that represent a tool named Pesavento Patterns. The tool named Pesavento Patterns must be distinguished from the market shapes named Pesavento Patterns. We will explain below what the market shape named Pesavento Patterns represents.

It is based on the algorithm of the zigzag delivered together with MetaTrader 4 in 2005-2006.

The algorithm is wonderful. It is the algorithm which is used in many custom indicators. Initially this algorithm was translated to MQL4 by Rosh. Many thanks to him for that. I would like to know who has invented this algorithm. If somenody knows, please write the name (or nickname) of the author in comments. Also I would like to know in which language it was previously written and in which trading platform it was used.

Again and again, we come back to the ZigZag indicator after having read some intelligent books about Elliot's wave theory, Fibo levels, Gartley's patterns, etc. An endless circle. An infinite subject to discuss.

Introduction Among all possible algorithms of zigzag charting, we can distinguish a class that the author names "Zigzags with Switching upon Breaking Through the Slowing Level". This class, in full or in part, includes most existing ZigZags. The name of the class itself, in fact, represents an algorithmic template. To make an indicator out of it, it is sufficient just to add the function that would detect the slowing level. The diversity of algorithms of such function is only limited by the imagination of the author of the future ZigZag.

A huge amount of ZigZag versions proves the existence of a constant and persistent interest in this indicator. A quite worthwhile interest. This is perhaps the only indicator that directly affects trader's emotions forcing the immediate actions with its bright vivid graphical representation of the main market movements. Apparently, this can be the only explanation of the phenomenon, with the majority's thorough understanding that this indicator is not intended for production of direct trading signals, nevertheless they continuously attempt to maximally approach it to the current market situation. Observing the endless redrawing of the last forecasting fracture is a doubtful advantage, especially when perceiving it.

ZigZag signal.

Even if the documentation/book of mql4 reccomand to NOT use ZigZag as

a strategy for forex trading and/or EA programming, i want to 

Problem Statement Let's think of what we have and what we want to have. Let's take a well-known ZigZag from the standard delivery of MetaTrader 4 as an example. Attach it to any currency pair's chart on any timeframe: Do you really want to trade with it? Everything is clear: you should sell on the upper kink and close your position by buying on the lower one.

ZigZag Indicator tracks and connects extreme points of the chart, the distance between these points being equal or higher than the percentage specified for the price scale.

I'm trying to determine direction of zigzag indicator with the icustom command.

This is what i have so far:

ZigZagHigh=iCustom(NULL,0,"ZigZag",MODE_HIGH,0);