OPEN-SOURCE SCRIPT
ZigZag Elliott Wave Strategy (Demo)
1. Strategy Objective
Objective:
Capture the Wave 1 → Wave 2 correction
Enter Wave 3 (strongest wave) after Wave 2 ends
Take profit at the Wave 3 target
Add more in Wave 4
Manage the position towards Wave 5
2. Visuals on the Chart
Green dots → Wave 1 peak
Red dots → Wave 1 trough
Orange line → Wave 3 target
Blue/purple → Fibonacci levels
Background:
Green → Wave 2 area
Orange → Wave 4 area
3.Strengths and Weaknesses of the Strategy
✅ Strong:
Trend-catching focused
Logical entry with Fibonacci
High potential due to focus on Wave 3
❌ Weak:
May cause zig-zag repainting (late signal)
Elliott waves don't always form clearly
May result in losses on fake retracements
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance.
Objective:
Capture the Wave 1 → Wave 2 correction
Enter Wave 3 (strongest wave) after Wave 2 ends
Take profit at the Wave 3 target
Add more in Wave 4
Manage the position towards Wave 5
2. Visuals on the Chart
Green dots → Wave 1 peak
Red dots → Wave 1 trough
Orange line → Wave 3 target
Blue/purple → Fibonacci levels
Background:
Green → Wave 2 area
Orange → Wave 4 area
3.Strengths and Weaknesses of the Strategy
✅ Strong:
Trend-catching focused
Logical entry with Fibonacci
High potential due to focus on Wave 3
❌ Weak:
May cause zig-zag repainting (late signal)
Elliott waves don't always form clearly
May result in losses on fake retracements
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.