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<SPAN
class=217324006-05072003>Ron,
Zig is
great for seeing the past but the future......... you must be very careful. Here
is a good description from TA A-Z...
<SPAN
class=217324006-05072003>
ZIG ZAG
Overview
The Zig Zag indicator filters out changes in an underlying
plot (e.g., a security's price or another indicator) that are less than a
specified amount. The Zig Zag indicator only shows significant changes.
Interpretation
The Zig Zag indicator is used primarily to help you see
changes by punctuating the most significant reversals.
It is very important to understand that the last "leg"
displayed in a Zig Zag chart can change based on changes in the underlying plot
(e.g., prices). This is the only indicator in this book where a change in the
security's price can change a previous value of the indicator. Since the Zig Zag
indicator can adjust its values based on subsequent changes in the underlying
plot, it has perfect hindsight into what prices have done. Please don't try to
create a trading system based on the Zig Zag indicator--its hindsight is much
better than its foresight!
In addition to identifying significant prices reversals, the
Zig Zag indicator is also useful when doing Elliot Wave counts.
For additional information on the Zig Zag indicator, refer to
Filtered Waves by Arthur Merrill.
Example
The following chart shows the 8% Zig Zag indicator plotted on
top of Mattel's bar chart.
<IMG height=268
src="gif00371.gif" width=380>
This Zig Zag indicator ignores changes in prices that are less
than 8%.
Calculation
The Zig Zag indicator is calculated by placing imaginary
points on the chart when prices reverse by at least the specified amount.
Straight lines are then drawn to connect these imaginary points.
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Section
Regards,
Jayson
<FONT face=Tahoma
size=2>-----Original Message-----From: mrdavis9
[mailto:mrdavis9@xxxxxxxxxx]Sent: Friday, July 04, 2003 5:05
PMTo: amibrokeryahoogroupsCc: jeff
davisSubject: [amibroker] SCANS FOR ZIG
CONDITIONS
Today, I finally spent some time looking at the ZIG
indicator. I have attached some charts that demonstrate Zig's
ability to identify uptrends and downtrends. I am wondering if
anyone has developed AFL code that can be used to scan
for symbols that are in uptrends, as well as another scan for symbols
that are downtrending. I am interested in any and all AA analysis coding
that will help me better understand Zig. I searched the AFL library, but
failed to see anything that looked like it could scan for Zig uptrends. My very
short look at Zig makes me think it may be one of the better indicators to
use for determining when to exit a position.
Is the sensitivity of Zig adjustable? If
it is, then perhaps one could adjust Zig so it takes you out of
some of the more serious pullbacks. Maybe it can be fine tuned to match
the individual trader's tolerance of pullbacks. I have not yet found the time
to learn anything about optimizing, so I will not be able to do
anything in that area.
BTW, I am very interested in starting, or joining
an Amibroker usergroup here in Dallas, Tx, so please contact me if you live in
the Dallas area and know of an existing group, or are interested in starting
such a group. All help will be appreciated. Ron DSend
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