Download MetaTrader 5

ZigZag indicator

To add comments, please log in or register
Do you need a trading robot? Orderit via Freelance service!
Christian Schuller
1469
Christian Schuller 2016.07.02 23:52 

How does the zigzag indicator work?


It does not seem to paint the last candles.

See red circle in my attached image.

Files:
zigzag.png 80 kb
Osama Shaban
1446
Osama Shaban 2016.07.03 01:05  
As I know, it gives the Highest High and Lowest low of last x candles according to it's settings.
Christian Schuller
1469
Christian Schuller 2016.07.03 02:25  
Osama Shaban:
As I know, it gives the Highest High and Lowest low of last x candles according to it's settings.

I read an article about it.

But did not understand why it is not good as an indicator to signal trades.

Sergey Golubev
Moderator
93625
Sergey Golubev 2016.07.03 20:54  
Chris Celis:

I read an article about it.

But did not understand why it is not good as an indicator to signal trades.

zigzag indicator is good (and there are some good EAs based on zigzag) but as far as I know - the last leg may be repainted in zigzag so it is used as the filter in most of the cases because of that.
Christian Schuller
1469
Christian Schuller 2016.07.03 21:08  
Sergey Golubev:
zigzag indicator is good (and there are some good EAs based on zigzag) but as far as I know - the last leg may be repainted in zigzag so it is used as the filter in most of the cases because of that.

Hi Sergey,

I see. Thank you. I think those EAs could be rather good.

Regards.

Uwe Goetzke
1441
Uwe Goetzke 2016.07.07 10:35  

Well  I doubt that the EAs based on an a ZigZag alone survive.

The "feature" of the ZigZag is to show reversals.

Therefore it "waits"  certain amount of bars if the new direction is confirmed by the rules which are usually a certain amount of pips/percent in the new direction.

If the price continues in between in the old direction the rule cannot be confirmed and if there is a new high (or low) it "repaints".

So the previous high/low is stable only if the ZigZag has moved in the opposite direction by the defined amount.

So it shows only a correct picture for the prices in the past and has very limited prediction capability for new prices. (as many other indicators like fractals).

Regards

Uwe

daMan
320
daMan 2016.07.16 10:28  

What I like to understand is, when last leg of the zigzag starts to display?

is it after so many percent, bar, pips/point etc. in opposing direction?

I'm sure there is a formula used for it but can anybody explain accurately in layman terms please...

To add comments, please log in or register