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I have not check the validity of your code....but the concept is very good!
Thanks for sharing.
Adam Hefner
----- Original Message -----
From: "SR" <raftsp@xxxxxxxxx>
To: <metastock@xxxxxxxxxxxxxxxxxx>
Sent: Thursday, February 14, 2002 6:15 AM
Subject: ZigZag validity indicator
> It is well known that although the zigzag indicator is a useful tool in
> filtering out market moves of minor importance (noise), its last "leg" is
> dynamic. This means that the last change in the indicator's direction may
> well be revised, as long as the predefined user's value (change in points
or
> percentage) since the last swing point is not reached yet. The point,
beyond
> which the zigzag indicator's last leg is trustworthy, is defined by the
> distance (change in points or percentage) between the last price and the
> last swing point (peak or trough). From that point on, the zigzag
indicator
> is valid, meaning that the direction of its last leg will not be revised.
>
> The following binary indicator shows the validity of the last leg of the
> zigzag indicator based on close prices and percentages. Instead of close
> prices one may use open, high or low as well as points instead of
> percentage, adapting the formula accordingly.
> In order to check ZigZag validity, use a zigzag of close and check the
> percent radio button. Use the same percentage value for both the zigzag
and
> ZigZag validity.
> As you will notice my indicator will drop to 0 (zero) each time a new
> direction of the zigzag indicator is initialized. It then rises to 1 (one)
> at the critical (no-return) point and it stays there until a new change
> occurs.
>
> ZigZag validity
>
> {1 = valid, 0 = invalid}
> perc:=Input("Percent",1,200,10);
> Z:=Zig(C,perc,%);
> last:=ValueWhen(1,( Z > Ref(Z,-1) AND Ref(Z,-1) < Ref(Z,-2) )
> OR ( Z < Ref(Z,-1) AND Ref(Z,-1) > Ref(Z,-2) ), Ref(Z,-1) );
> pc:=If(C > last, (C-last) * 100 / last, (last-C) * 100 / last);
> pc:= Abs(pc);
> cdBars:= BarsSince( (Z<Ref(Z,-1) AND Ref(Z,-1)>Ref(Z,-2) ) OR
> (Z>Ref(Z,-1) AND Ref(Z,-1)<Ref(Z,-2) ));
> ind:=If(pc>=perc,1,0);
> indBars:= BarsSince(ind=1 AND Ref(ind,-1)=0);
> If(indbars<cdBars,1,0);
>
> I hope this is useful.
> Any feedback will be appreciated.
>
> SR
>
>
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