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Mihail,
I am not sure how a mathematical formula for zigzag would look like, but I
can tell you that the logic is the following:
Zigzag is a set of lines connecting successive valid Peaks and Troughs.
A valid Peak is the highest peak since the last valid Trough at a distance
of at least the reversal amount (expressed either as an absolute value or as
percentage).
A valid Trough is the lowest trough since the last valid Peak at a distance
of at least the reversal amount.
All of the programs use the above method of identification of swing points
(peaks and troughs). But from here on there are differences:
For example in Metastock (and Amibroker I guess) the validity of the LAST
swing point is questionable and thus the line connecting that swing point
with the last price on the chart is revisable.
Other software like TradeStation, although they use the same logic for the
identification of the swing points (desribed above) they follow different
confirmation approaches, which are not necessarily better. For example the
TradeStation's zigzag does not plot the last swing and the corresponding
line segment until it is confirmed. However their confirmation approach adds
unnecessary lag and now they seem to be willing to reconsider it according
to my suggestions to them.
If I can be of more help then let me know.
Spyros
Message: 2
Date: Mon, 17 Nov 2003 18:58:23 -0000
From: "manohohman" <kelols@xxxxxxxxxxx>
Subject: Re: Bollinger Bands
http://trader.online.pl/MSZ/e-w-ZigZig_Fixed.html
JO
--- In Metastockusers@xxxxxxxxxxxxxxx, "bina1" <bina1@xxxx> wrote:
> Hi,
> Do somebody know what the mathematical formula of the function zig
zag is.
>
> Mihail
> ----- Original Message -----
> From: Kevin
> To: Metastockusers@xxxxxxxxxxxxxxx
> Sent: Sunday, November 09, 2003 12:24 PM
> Subject: Re: [Metastockusers] Bollinger Bands
>
>
> Hello,
>
> Your observation is quite correct. Low volatility often begets
high
> volatility, a fact that underpins many options strategies.
>
> Here is a formula for plotting the Bollinger Band Width (there
are others):
>
> ( ( Mov( C,20,S) + (2 * ( Std( C,20 ) ) ) )- ( Mov( C,20,S) - ( 2
* ( Std(
> C,20 ) ) ) ) ) / Mov( C,20,S) * 100
>
> Create an exploration and decide upon your own threshold.
>
> Regards,
> Kevin
>
> At 07:02 09/11/2003 +0000, you wrote:
> >
> >Hi!
> >
> >I have noticed that when Bollinger Bands (I mean the upper and
lower
> >line) get very close together, there will soon be a very sharp
move
> >either up or down.
> >
> >Are there any explorations that finds those stocks that have the
> >bands close together? (situation before the BIG move).
> >
> >
> >
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> >
> >
> >
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http://docs.yahoo.com/info/terms/
>
>
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