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Yarrol,
You also need to be careful using the following functions which make use of
the Zig Zag function:-
Trough, Troughbars, Peak, Peakbars.
As noted the "last leg" of the zig zag plot can change as new data bars are
added.
John
----- Original Message -----
From: "Yarroll" <komin@xxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxxxxxxx>
Sent: Wednesday, July 25, 2001 12:42 PM
Subject: LinRegSlope divergence, again
> Hello again on the subject.
>
>
> To sum up your views on the matter, it's the divergence function that's
> responsible for the formula weird behavior...
>
> Does it mean that we might as well completely forget the divergence
function
> because of it? Well, what's the use for it then, (if any)? (I would
> understand why some people would use ZigZag function - outside of systems
> testing).
>
> It really irks me to say the least. I've done a lot of testing on
> divergences... Now it turns out to be rubbish.
>
> All the best,
> Yarroll
>
> (I snipped your posts for brevity; here's my original one which Outlook
> keeps... hope everyone followed the matter)
> I wrote
> Hello List,
>
> Please have a look at the formulas:
>
> Buy long: divergence(C,LinRegSlope(C,2),0.01)=-1
> Sell short: divergence(C,LinRegSlope(C,2),0.01)=1
>
> They are very profitable in tests, just too good to be true. That's
because
> it is... Tests results back-adjust themselves (ie, you know you should
have
> gone long 3 bars after the fact, just like the ZigZag indicator).
>
> My question is: what's wrong with the formula?? For all I know LinRegSlope
> indicator doesnt change its apperance on the chart going back. MS Help
says
> the divergence function uses ZigZag ... is that it?
>
> Thanks,
> Yarroll
>
>
>
>
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