zigzag question - page 3
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Here is the description of the zigzag parameters from the codebase, I remember reading this a while ago while trying to figure out what the deviation parameter is for, I hope it makes more sense to you than it did to me. lol
ZigZag Indicator tracks and connects extreme points of the chart, the distance between these points being equal or higher than the percentage specified for the price scale.
Depth is the minimal amount of bars where there will not be the second maximum (minimum) Deviation pips higher or lower than the previous one. I.e., ZigZag can always diverge, but it can converge (or completely draw together) more than at the Deviation value only after Depth bars. Backstep is the minimal amount of bars between maximums/minimums.
After the ZigZag has captured the lowest point, it starts to search for the turn point until the rollback down from the maximum value exceeds the parameter. As soon as rollover down exceeds the parameter, the second (in this case, the upper) point is considered for captured, and ZigZag starts to search for the third one (in this case, for the lower one), etc.
I wouldn't recommend trying to create flaab's system because of some back-test results. The system he's recently showing, he'd be trying to perfect for sometime now, example here. Somehow that system never shows a Live result . . . humm wonder why!!
Actually I improved it quite a lot but didn't share it. It has nothing to do with fractals or zig-zag.
My answer to the post is that support and resistance levels are not the cause of price movements, but the simptoms. You would be better off studying how does price movement affects future price movements: any price movement is a price/time vector and several vectors can be aggregated to find which is the likely future direction of price action. That is how the EA uzben talked about works: aggregation of different price and time vectors. This methodology is extrapolable to any timeframe.
However, if you turn this concept into a Scalper Ea, several problems arise with spread+lag+unknown closing spread. I am currently working to make a feasible version for live trading.
This is what I got, the PF is around 5.
Whoodoo, you can read the support/resistance levels you need from my first ZigZag No Repainting Indicator. Just read the buffers from your EA.
If you want to do it yourself, set the ZigZag ExtBackStep to 1 to avoid repainting while reading the iCustom data.
Cheers ;-)
@SDC: Firstly, thank you SDC for your support regarding ZigZag. I will spend time to read your post thoroughly, but I literally woke up today, feeling like I got beat the F up. I have been coding MMA volume II partially during the day and during the night, for about a week now. I am in a hurry, because I do not want to be "second" in coding this effective strategy. I wish to be the first to add this EA to the code base. The more I code this EA the less concerned I am about another coder coding it successfully before me. This is because there are so many possible market outcomes that need to be controlled by EA parameters. The code is immense and intense. I do not say this lightly. It has been the hardest mental challenge that I have ever been faced with. It does get easier as I add comments and condense the code, but still...
@flaab: Thanks flaab for posting your advice regarding zigzag. I will spend time to read your post thoroughly, but... (read above) Also, I believe I understand what it is that you are trying to show me regarding "price action". Previous price action movement can repeat itself in future current price action movements. Your advice is to "be ready" when history price action (speed and time) repeats itself in current price action. Is this true?
Thank you SDC & flaab!