Zig Zag question....

[Rossini]

My understanding of the Zig Zag indicator is that it attaches its self to the current highest high or lowest low (from the highest high or lowest low) and will only change direction and form a new line once a certain % retracement has been made. I hope is is correct, feel free to correct me.



If this is the case, is there a way of telling when the indicator first drew its new line? I realise I could work it out manually but there must be a quicker way? I want to use this as a confirmation after entry not as the entry its self.



Cheers



R

 

[TheBramble]

R - you are aware the ZigZag repaints?

By which I mean it could be showing a nice up-trending ZIg from a few weeks back today, and tomorrow, it will happily show a Zag down from a few days ago as if it's always looked like that.....

 

[Rossini]

Yes I am- sort of? I have assumed that once a line has ''finished'' (a new line has started) then the one that has just finished is set i.e. it will not and can not move? Is this right?

 

[TheBramble]

Beg your pardon, yes. correct.

It's only the latest segment that can whip around like a weevil on whizz.

Which begs the question you initially asked?

 

[Rossini]

On the settings for the indicator what do the settings ExDepth, ExDeviation, and ExtBackstep actually mean?

Above are the options for MT4.

On Pro real time (the charting that I normally use) I only have the settings- Required variation and I can set this to a Percentage or point? Does that mean a percentage retracement creates a new line or a set point or pip retracement creates the new line?

Cheers

R

 

[Rossini]

...

 

[superfly]

Highlighting MarketStructure

I use zigzag to highlight vertical price journeys beyond a chosen threshold(=0,5%).
The zigzag makes a turn everytime the price between the two open of bars fades the last zigzag leg more then 0.5%.

Nothing magical, just highlighting all (slow and fast) occurrences of vertical price journey beyond 0.5%.

You can try to mitigate the repaint (even during the forming of bars).
I force the zigzag threshold % to calculate from the open of a bar to the open of the following bar(s). Sierra chart has that feature.

Zigzag is grey sharktooth in the background.

http://www.sierrachart.com/userimages/upload_2/1250836501_45_UploadImage.png