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<span
style='font-size:10.0pt;font-family:Arial;color:navy'>
<span
style='font-size:10.0pt;font-family:Arial;color:navy'>Hy<font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'> spyro,
<span style='font-size:
10.0pt;font-family:Arial;color:navy'>
<span lang=EN-GB
style='font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:EN-GB'>You
say <span
class=SpellE><span lang=EN-GB
style='font-size:10.0pt;font-family:Arial;color:black;mso-ansi-language:EN-GB'>ZigValid<font
size=2 color=black face=Arial><span lang=EN-GB style='font-size:10.0pt;
font-family:Arial;color:black;mso-ansi-language:EN-GB'>:= <span
class=SpellE>fml(“ZigZag
validity”) = 1 …but in an uptrend when the close of the last bar is
lower then the previous one then ZigZagvalidity
becomes 0 again and if the next bar is higher then you have the condition 1
again and if next is again lower then you have again 0….SO when you use this
formula for a system If(ZigVal and <span
class=SpellE>and zigCondition and myCondition1
and ….myConditionN, doSomething,
doSomethingElse) …in practise that would mean
that you have one bar a system next bar no system next bar system next bar no <span
class=SpellE>system..that I find disappointing.
If I’m wright the only thing what this <span
class=SpellE>ZigZag validity does is visualise in your chart a point
witch is X points or X% from the previous high or low?...Witch
is like an opposite trailingstop ( in this case a
start trading) on the last previous high or low.
<span lang=EN-GB
style='font-size:10.0pt;font-family:Arial;color:black;mso-ansi-language:EN-GB'>Greetings
igor
<span lang=EN-GB
style='font-size:10.0pt;font-family:Arial;color:navy;mso-ansi-language:EN-GB'>
<font size=2 color=black
face=Arial><span lang=EN-GB style='font-size:10.0pt;font-family:Arial;
color:black;mso-ansi-language:EN-GB'>
<font size=2
color=black face=Arial><span lang=EN-GB style='font-size:10.0pt;font-family:
Arial;color:black;mso-ansi-language:EN-GB'>Igor<font
size=2 color=black face=Arial><span lang=EN-GB style='font-size:10.0pt;
font-family:Arial;color:black;mso-ansi-language:EN-GB'> sent me the following
message but unfortunately my reply was sent back
by pandora.be.
So I repeat my reply here, expectin<font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'>g him and anyone else interested to <span
class=GramE>read
it.
<span
style='font-size:10.0pt;font-family:Arial;color:black'>Igor<font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'> wrote:
Hello,
With great interest I read your mail...and I always wonna to do
something with the zigzag indicator...but like you're saying the last
leg is dynamic etc etc....so maybe your formula could give some
solution....But how do I have to interpret your indicator I don't find a
logic pattern in it.
Could you give me some more help please...thank you very much...
igor
My reply is this:
<span
style='font-size:10.0pt;font-family:Arial;color:black'>Igor<font
size=2 color=black face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:black'>,
my indicator is no more than what its name declares. It was not written to
be used as a stand-alone indicator but on the purpose of watching zig
zag’s
behavior and measure its validity. So, a simple answer to your question
would be: “Use Metastock’s zig zag the way you would, but please
have an eye
on my indicator so that you will know at a glance if zig zag is trusty or
not. In other words, DO NOT trust zig during those periods that my indicator
reads zero.” That could be all there is to it.
As you see, the question now is “how can one use zig zag in the first
place”
and not “how can one use ZigZag validity” because the second
question has
already been answered.
If you are not familiar with zig zag, I suggest you have a look at Metastock
’s on-line help, if you haven’t already done so. What I can say
here, is
that you should think of zig zag as a “major movements catcher”
dedicated to
the study of trends in prices (unfortunately, more suitable for past trends,
less suitable for present ones and only partly, if at all, for future ones).
My indicator attempts neither to solve zig’s late response problems, nor
to
add directly new possible uses to its own. No one will ever be sure that
yesterday’s swing point is really the start of a new trend, no matter
what
indicators one uses! If that were possible, then zig zag would be really
the most valuable indicator ever made. In fact it would be what we (traders
and analysts) call “the holly grail”. Very sorry to say it is not.
What’s even worse, hundreds of unsuspecting trading software users, have
in
the past been victims of zig’s last leg’s misleading change of
direction,
and some of them have even lose their money investing in the “new
trend”.
So, please be very careful when you use zig zag, and functions based on it
like peak() and trough() )!
The good news (associated with my ZigZag validity) is that now, one can be
sure that when my indicator reads 1 (one) this means that zig’s direction
(the trend) is well established and Metastock will not revise its direction
at any time in the future! Well, it will probably adapt the last leg’s
slope, but never its upwards or downwards direction.
Furthermore, now you can use zig (always as a pair with ZigZag validity) in
numerous studies (formulas, explorations and experts), because from now on
you will have no doubt that once my indicator has the value of 1, zig
indicates the right direction. What you only have to do in all those
studies, is to add a condition like the following:
ZigValid:= fml(“ZigZag validity”) = 1;
And then ….
If(ZigVal and and zigCondition and myCondition1 and ….myConditionN,
doSomething, doSomethingElse)
I hope that all the above help.
Anyhow, I was asked to write an article about my indicator for a newsletter.
So, maybe I will include some more examples there. When I send it and after
its publication, I will let the user group know.
If you have any more questions about ZigZag validity I will be glad to
assist you.
Spyros (SR)
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