Uses for Zig Zag Indicator

["Ross Kovacs" <rossrk@xxxxxxxxxxxxxx>]

I've found the indicator useful in testing systems.  All of my systems use
at least two time frames (i.e., a short term signal that is only accepted
when it is confirmed by a longer term signal).  Often I have an idea for a
system in one time frame that I want to test without having the other time
frame "interfering" with the signals from the idea being tested.  For
example, I might test a system idea where I only enter a long when a 10% Zig
Zag is rising (and correspondingly, only enter a short when a 10% Zig Zag is
falling).  Once I've decided if the trading idea is viable with Zig Zag, I
will then combine the trading idea with a real indicator in the Zig Zag's
time frame to see if I have a viable system.

Obviously, this is only useful to someone with my style of building trading
systems (check at least two time frames).


Ross Kovacs

rossrk@xxxxxxxxxxxxxx