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Theo and Pierre and all,
the "ZigZag Validity" indicator was my first attempt to confront the problem
of the validity of zig().
Please have in mind that this indicator deals ONLY with the LAST dynamic leg
of zig(). It is perfectly reliable in what it says, but it says only if the
LAST trend indicated by the zigzag indicator (its direction NOW) is subject
to revision or not.
The code for this indicator of mine had been sent a couple of months ago to
the "TASC" and recently to the "Guppy Traders" who will also publish a
similar article of mine, soon.
But in the meanwhile, I made a newer and much more powerfull indicator named
"SR ZigZag Trend" which was posted to various groups including this one. I
guess that soon there will be an article for this indicator too.
Unfortunately many users have not completely understood the differences
between the two indicators (some of them even confuse their names). So I
think it's a good idea to explain what each indicator is used for:
ZigZag Validity:
It returns 1 for valid LAST leg of zig() - regardless of zig's direction -
and 0 for revisable (NOT valid) LAST leg. It is NOT a stand-alone indicator,
but it has to be used WITH the zigzag indicator.
Usefull for visual inspection only. ZigZag Validity's PAST readings are NOT
trustworthy. It must NOT be used in systems.
It does NOT say the truth about the past, but it is absolutely RELIABLE
about the PRESENT! (Strange but true!)
SR ZigZag Trend:
It returns 1 for valid uptrend and -1 for valid downtrend, REJECTING ALL the
INVALID readings of zig().
It can be used as a stand-alone indicator (even in zig's place).
Usefull for visual inspection but also for many other purposes. ALL its
readings (present and past) are trusty. It can be safely used in systems and
if pasted in the system tester its variables can be even optimized.
It can and it certainly WILL be used as a basis for other indicators. We've
only just begun :-)
In my opinion one does not really need my "ZigZag Validity" anymore. One can
do the job much more effectively with "SR ZigZag Trend" which is allways
reliable and safe. Additionally "SR ZigZag Trend" ("SR ZZT" for short)
returns also the direction of the trend. It is like having an always valid
zigzag indicator!
I am sure you will find the code for the fourth version of "SR ZZT"
somewhere in your past messages from the group. If you don't have it I will
be happy to provide it.
I hope this helps.
Spyros
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