HH HL LL LH Trading Guide
The HH HL LL LH (ZigZag) indicator simplifies market structure analysis by automatically detecting and labeling structural swing points on the chart. It uses a dynamic ZigZag algorithm to map out price swings, allowing traders to instantly identify whether the market is forming uptrend patterns (Higher Highs, Higher Lows) or downtrend patterns (Lower Lows, Lower Highs).
What does the indicator show?
- ZigZag Lines: Connects the identified swing highs and swing lows to visualize the market's macroeconomic path.
- HH (Higher High) & HL (Higher Low): Green text labels marking progressive upward structure, signaling bullish continuous momentum.
- LL (Lower Low) & LH (Lower High): Red text labels identifying a breakdown in structure and subsequent downward progression.
Key Settings
- ZigZag Length: Determines the sensitivity of the swing point detection. A higher value filters out minor volatility to focus on macro swings, while a lower value captures every minor movement.
- Show Zigzag Lines / Show Labels: Toggles the visual rendering of the connecting lines and the text annotations.
- Label Offset: Adjusts the vertical spacing between the text label and the extreme price point to keep the chart clean.
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. Structure Swing Signals
These boolean signals trigger exactly on the candle where a specific swing extreme is confirmed by the algorithm.
hh— Triggers when a Higher High is confirmed.hl— Triggers when a Higher Low is confirmed.ll— Triggers when a Lower Low is confirmed.lh— Triggers when a Lower High is confirmed.
Strategy Example: If you are looking to enter a trend-following Long position on a pullback, you could set an entry condition for when hl is true, ensuring you buy at a newly confirmed structural support level.