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This is one of my complaints about all price-based indicators... they
may be able to capture the reversal, but they have no predictive power.
The duration of the reversal is unknown, and that means you could be
whipsawed by subsequent reversals, or the amplitude of the new trend
might be too small to trade.
My solution has been to use corollary data to gauge the strength of the
reversal.
I guess this being the case you can substitute any price-based
oscillator for Zig.
-- John
Yuki Taga wrote:
Hi CS,
It's a nice little piece of work, below. Unfortunately, in my
experience by the time this takes place, you may have lost a
significant portion of the move, and there is no guarantee that while
the present swing is now locked in, that it won't change the very
next day to another new swing, requiring another waiting period for
validation. Because no one can predict the amplitude of these
swings, nor their duration, I find the Zig useful only for seeing
what I should have done, not what I should do. :))
Yuki
--
_____________________________________________________
John T. Nelson
Trader | Dreams Of Empire
mail: | trader@xxxx
web: | http://www.dreamsofempire.com/
_____________________________________________________
"Prediction is sexy... but strategy makes money"
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