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Adam,
I agree that Zig Zag is definitely something to be careful
with. I seem to recall Metastock Help warning of the "Zig Zag
Trap"....as it surely can be. It took me awhile to accept
that I could use it to define peaks and troughs in real time
EOD trading. And even longer to get comfortable with it.
That said, I wouldn't recommend anyone but my worse enemy use
it. <g> ...because at least one screwup will surely happen
someday.
As for my "explanation" of the ZZ indicator, it's just the way
I believe that it works, based on my observations from using
it. I certainly don't want anyone to take it as the final
word. And I'd appreciate being corrected if someone finds
what I said is wrong.
Regards,
Ken
Adam Hefner wrote:
> Hello Ken, What you have posted seems logical and I thank
> you for your comments.The "Zero Balance" indicator is
> basically taking past peaks and trough valuesand calculating
> where future peaks and trough should be (provided the
> trendholds), but since there is this dynamic part to the
> Zig-Zag function I thinkmost would be more comfortable with
> a different method of determiningthese peaks and
> troughs......after all who wants to base money on an
> "untrusted"indicator? Again I thank you for your explanation
> on the Zig-Zag function.
> Best wishes,
> Adam Hefner.
> VonHef@xxxxxxxxxxxxx
> VonHef@xxxxxxxxxx
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