I have been studying indicators and trading strategies for a while now although i'm kind of new in the market and have yet to become more experienced! I have come across many interesting systems and indicators so i wanted to share one of them with whomever might find it useful.
So the system is pretty simple;
It's based on the idea that the end of ZigZag legs and the next point is found in peaks of high standard deviation where the market if likely to reverse and retrace from the current direction, so we observe the ZigZag leg direction and look for the next peak of above average standard deviation which is where the next zigzag point might be and we predict a retracement or trend reversal.
I coded the indicator(See in image bellow) that calculates an averaging of standard deviation( The red Line ) and find peaks of high standard deviation ( The Blue line ) above the defined averaged StdDev. the yellow lines in the chart are the zigzag indicator.
I also coded the very simple EA that follows that rule and looks for StdDev above the averaged and try to identify the reversal based on the zigzag current leg and the level of standard deviation.
This strategy, indicator and EA can be applied with many different parameters and set ups, it can be used in many time frames with different purposes, so feel free to find a better use for it.
The ea is the same as before with the difference that uses a different way to find StdDev highs.
a low-Period StdDev against a higher averaging gives less signals, but there's stronger chance it will reverse, a high-Period against a StdDev averaging might indicate i possible continuation of the trend, so i might be better to trade in the direction of the leg.
::**The ZigZag indicator must be in the indicator folder for the EA to work.**::
The EA can be tested in Open prices only mode, so it can also be tried optimization which will go a lot faster.
This EA and indicator is for educational purposes only, i'm not a professional or advanced coder or trader, it should be used with other confirmations and your own judgement.
I hope that someone can find use for it.
Please share your view and experience, opinions or constructive insights and criticism are welcome.
New ideas are also welcome.
*The input ::'Positive' can be used to trade in the direction of the current zigzag leg if set to "=false";
So the system is pretty simple;
It's based on the idea that the end of ZigZag legs and the next point is found in peaks of high standard deviation where the market if likely to reverse and retrace from the current direction, so we observe the ZigZag leg direction and look for the next peak of above average standard deviation which is where the next zigzag point might be and we predict a retracement or trend reversal.
I coded the indicator(See in image bellow) that calculates an averaging of standard deviation( The red Line ) and find peaks of high standard deviation ( The Blue line ) above the defined averaged StdDev. the yellow lines in the chart are the zigzag indicator.
I also coded the very simple EA that follows that rule and looks for StdDev above the averaged and try to identify the reversal based on the zigzag current leg and the level of standard deviation.
This strategy, indicator and EA can be applied with many different parameters and set ups, it can be used in many time frames with different purposes, so feel free to find a better use for it.
The ea is the same as before with the difference that uses a different way to find StdDev highs.
a low-Period StdDev against a higher averaging gives less signals, but there's stronger chance it will reverse, a high-Period against a StdDev averaging might indicate i possible continuation of the trend, so i might be better to trade in the direction of the leg.
::**The ZigZag indicator must be in the indicator folder for the EA to work.**::
The EA can be tested in Open prices only mode, so it can also be tried optimization which will go a lot faster.
This EA and indicator is for educational purposes only, i'm not a professional or advanced coder or trader, it should be used with other confirmations and your own judgement.
I hope that someone can find use for it.
Please share your view and experience, opinions or constructive insights and criticism are welcome.
New ideas are also welcome.
*The input ::'Positive' can be used to trade in the direction of the current zigzag leg if set to "=false";
and Excelx, if the code does the job of what you want to test, there is no need to nit-pick imperfections. ZZ in itself is looking at StDev and you also run a 2nd StDev (10) to confirm if I am not mistaken. We can see the points line up nicely, have you had a chance to run this manually in something like FxBlue trading simulator to confirm trades are going through just like you expect? Also it can help find a 2nd filter to prevent too early entries.
