This indicator uses the metaquotes ZigZag indicator as base to plot fibonacci extension and fibonacci retracement based in the Elliot waves.
A fibonacci retracement will be plotted on every wave draw by the ZigZag.
A fibonacci extension will be plotted only after the 2nd wave.
Both fibonacci will be updated over the same wave tendency. Supporting until 9 consecutive elliot waves.
Parameters:
- Depth: How much the algorithm will iterate to find the lowest and highest candles
- Deviation: Amount of points variation that will be ignored
- Back Step: Maximum of candles to back for retracing (zigzag pattern is a lot less confuse with this correction enabled)
One last thing: The Data Window will indicates the zigzag levels and the fibonacci marks. The last data is the wave type code (MT5 only allows float numbers) that can be converted as:
Wave Mark Elliot Wave 0 The first (up or down) 2 The second wave up (retraction) -2 The second wave down (retraction)
3 The third wave up (extension)
-3 The third wave down( extension )
4 The fourth wave up (retraction) -4 The fourth wave down( retraction ) 5 The fiveth wave up ( extension ) -5 The fiveth wave down(extension) 6 The sixth wave up (retraction) -6 The sixth wave down( retraction ) 7 The seventh wave up ( extension ) -7 The seventh wave down(extension) 8 The eighth wave up (retraction) -8 The eighth wave down( retraction ) 9 The nineth wave up ( extension ) -9 The nineth wave down(extension)
