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Hi everyone
It always amazes me to see how excited people get when something like
this gets around. Let me quote from the MS handbook." Be forewarned,
that the last leg of the Zig Zag indicator is dynamic, meaning that it
can change."
Now the functions like Trough, Peak, Divergence make use of the Zig Zag
indicator. Take the first line of the Wolfe Indicator,
Pa:=Trough(4,L,5). As can be seen, the trough must first retrace by 5%
before it becomes a trough. Only once this has occurred, is the signal
valid. Otherwise you are using data from the future. This is not allowed
in real trading.
Now if you rewrite the indicator to only give a signal once the 5%
threshold has been reached, it is not anywhere near as "accurate". Be
careful, there are very few systems that actually work.
BTW, if you are looking for other MS expert, you can contact me. If you
have something to offer, I could consider a swop.
Erich
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