Way to approach the ZigZag indicator! (?) | Page 4 | Forex Factory

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Way to approach the ZigZag indicator! (?)

  • #61
  • May 7, 2019 11:26am May 7, 2019 11:26am
Quoting VEEFX
Thinking further... the idea I had earlier to see if there is any "magical dance" between the (say) M15 Zigzag and M5 ZZ and whether a confluence or a crossover between the two give more directional bias. I think it does (visually speaking an inspecting some volume related stuff that comes standard with Sierra as part of this indicator. BUT, it tried to enable a simple crossover strategy between the two ZZs and the algo (delivered with Sierra) gets confused on tick chart. it is opening trades randomly and only at the start of the next tick once...
Update: putting EMA on ziggys gave me a headache to implement the algo but it works as design but not profitable. I used zero-lag ema on the ziggy lines that connect to each of the HH/LL. My net observation...

for profitable trades > it enters late, produces immediate drawdown but eventually goes into a long running profit
for losing trades > it enters early, produces instant win but eventually goes into a long running loss.

Connundrum but that is what ZigZags do. it is in their DNA and we cannot fight that. The scorpion will always sting as it is in his nature!

So BACK TO MEDIAN. I think Median is where the focus should be. it's the center of gravity for price to oscilate and vascilate and I believe a market neutral strategy could be devised only by DIVERGENCE technique that will work across all market conditions and all trading styles across any charting type or timeframe. It holds the universal ingredients imo. Every time you predict a "range" or "Scale", failure is bound to happen imo. Back to researching medians! Got to nail this soon or move on!
Staying in my lane...
  • #62
  • Edited 10:23pm Feb 19, 2020 6:52pm | Edited 10:23pm
Quoting AntiCre
Introduction I think almost all traders know the ZigZag, an indicator that connects tops and bottoms by drawing a line between these peaks and troughs. The indicator identifies peaks and bottoms by identifying candle's highs and lows that are either the highest high or the lowest low within a lookback period. Thus, the ZigZag indicator (ZZ) is basically the same as a Donchian channel or the stochastic oscillator. However, the implemented method for identifying tops and troughs is the reason why the ZZ legs can repaint quite often, i.e. a former...
OMG ... it is in front of my nose for almost 1 year ... I am a blind man ...
Thank You very much AntiCre ... will look at this again ... Simple enough. Time to do some home work ...

Small lot at beginning can be used for this zigzag idea, and then capitalize/ it later if the direction is confirmed, i think...
while still waiting for 'answer' (signal) given by the system for entry solution ...

The problem of trading ZZ is that it is a repaint indicator, so the high/low point will be changed during its way to top/bottom point ... especially if we take a very big variable value in its k setting, as example. In this case, we can get burned if the trend is always in the same direction for a long time, and we are against it. Price can swing up and down, so there is also a hard to define if the price will retrace (and build the opposite trend) or it is just a small pull back and continue in the same direction.
So, Closing the wrong order at the right time is a good idea, before we get bigger and bigger draw down ... but how to decide when to exit ?? yeah ... it is also not easy ...

Anyway, there is some think for me to pay attention of ... and if you have time, please see my PM ...
  • #63
  • Aug 10, 2022 1:51pm Aug 10, 2022 1:51pm
Firstly zigzag indicator is best use for market structure and patterns W and M and trendline channel.


Let's say you have double zigzag depth .

12 fast period exit Depth and
77 fast period exit Depth.

When 12 and 77 confirm at a price leg (lower low fractal swing)

Entry can be at that leg base on a bullish engulfing (initial break/dominant break) when both 12 and 77 zigzag stop there


Or entry trade when the 12 period exit Depth confirm .

The trend confirm when price break a fast or slow exit Depth price level/previous swing lower high .

Once a slow and fast or fast only form we buy again..

Then connect a vertical trendline from the slow exit Depth period to fast or slow .


ACSTREND + a double period exit Depth (better to use the Wave_Arrows_Alerts Indicator strategy code) + QQE indicator


This is very good combination .
  • #64
  • Dec 15, 2022 2:23am Dec 15, 2022 2:23am
I use default ZigZag parameters (i.e, 12,5,3) along with TEMA (200 Period). I trade in the TEMA direction and open an entry at the end of the previous ZZ leg. My SL remains at the opening of the current ZZ leg. And I target a fixed TP of 30/50 Pips. -- I have been hitting the TP at a 95% success rate. Once a 30 Pips target is achieved, I set the remaining orders to BE and wait for the 50 Pips or BE whichever hits first.
The best traders hone their skills through practice and discipline.
  • #65
  • Edited 3:08am Dec 20, 2022 2:35am | Edited 3:08am
Quoting ross.d
I use default ZigZag parameters (i.e, 12,5,3) along with TEMA (200 Period). I trade in the TEMA direction and open an entry at the end of the previous ZZ leg. My SL remains at the opening of the current ZZ leg. And I target a fixed TP of 30/50 Pips. -- I have been hitting the TP at a 95% success rate. Once a 30 Pips target is achieved, I set the remaining orders to BE and wait for the 50 Pips or BE whichever hits first.
Hi RoSS.D,

Really good if you can get so big success rate (95%) just using ZZ (i guess you build your Own Zigzag ?) ... and TEMA only,... and your SL line is remains at opening of current ZZ leg... .
You are a smart trader , because you are a new member at FF, but can get a good success rate.... how long have you trade like this, and the result is remains always like that ?
Or ... it is your best trade so far ??

i will PM you ...
anyway, have a nice day & Merry Christmas to all of you ...
  • #66
  • Edited 12:44pm Dec 20, 2022 9:12am | Edited 12:44pm
Quoting newhope
{quote} Hi RoSS.D, Really good if you can get so big success rate (95%) just using ZZ (i guess you build your Own Zigzag ?) ... and TEMA only,... and your SL line is remains at opening of current ZZ leg... . You are a smart trader , because you are a new member at FF, but can get a good success rate.... how long have you trade like this, and the result is remains always like that ? Or ... it is your best trade so far ?? i will PM you ... anyway, have a nice day & Merry Christmas to all of you ...
No newhope!! I didn't build my own ZigZag , it's the one default. I just downloaded the AllAvergesRibbon indicator (the one attached) and set the moving averages to TEMA. I set the TEMA from 145 to 400 for better results (since you can only add 18 moving averages, you may choose the gap between 145 to 400 accordingly). After that, I just traded in the TEMA direction (following the ZZ entries, target, and SL as stated above). The signals are very less, but they are all quality signals. So far I took 10 trades with a 100% success rate. But, I also did backtesting over the past one and a half years and the result was 95%, which gave me more confidence in using the system!! I have been trading this system since last month and 10 signals in a month are not bad at all.

All the best!!
Attached File(s)
File Type: ex4 AllAveragesRibbon_v1 600+ button.ex4   212 KB | 435 downloads
The best traders hone their skills through practice and discipline.
  • #67
  • Dec 20, 2022 10:22am Dec 20, 2022 10:22am
Hello Ross,

which tf do you use
  • #68
  • Dec 20, 2022 10:59am Dec 20, 2022 10:59am
Quoting mchl13
Hello Ross, which tf do you use
Hey mchl13 - I trade on 15 minutes timeframe.
The best traders hone their skills through practice and discipline.
  • #69
  • Dec 20, 2022 11:10am Dec 20, 2022 11:10am
I thought I must add this so you may see the results by yourself.

The two failed to reach the 50 Pips target because I set the SL to BE.

All the best!!

Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 103 KB
The best traders hone their skills through practice and discipline.
  • #70
  • Dec 20, 2022 10:59pm Dec 20, 2022 10:59pm
Quoting ross.d
{quote} No newhope!! I didn't build my own ZigZag , it's the one default. I just downloaded the AllAvergesRibbon indicator (the one attached) and set the moving averages to TEMA. I set the TEMA from 145 to 400 for better results (since you can only add 18 moving averages, you may choose the gap between 145 to 400 accordingly). After that, I just traded in the TEMA direction (following the ZZ entries, target, and SL as stated above). The signals are very less, but they are all quality signals. So far I took 10 trades with a 100% success rate....
Hi Ross.d,

Thank's a lot. i will try to test what you said. SL you used based on what ? some people use atr, but other trader use "another indicator", because trading zigzag need Sideway market condition ... so this indicator must can be used to measure the market condition at that time, if it is in "sideway" condition, then it is safe to try to catch the top/bottom of zigzag leg , i think. or i am wrong ??
anyway, thank you for your information & idea ...
  • #71
  • Dec 21, 2022 8:13am Dec 21, 2022 8:13am
Quoting newhope
{quote} Hi Ross.d, Thank's a lot. i will try to test what you said. SL you used based on what ? some people use atr, but other trader use "another indicator", because trading zigzag need Sideway market condition ... so this indicator must can be used to measure the market condition at that time, if it is in "sideway" condition, then it is safe to try to catch the top/bottom of zigzag leg , i think. or i am wrong ?? anyway, thank you for your information & idea ...
Hi newhope - This screenshot speaks a hundred words ...

Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 119 KB


Took the trade yesterday (i.e., 20-12-2022) at ZigZag when all green TEMA. See the entry, TP1 (30 Pips), TP2 (50 Pips), and Stop Loss in the screenshot. Trust this will be self-explanatory. If you still need to know something please let me know.

Trust this helps!! All the best!!
The best traders hone their skills through practice and discipline.
  • #72
  • Dec 21, 2022 8:33am Dec 21, 2022 8:33am
Quoting ross.d
{quote} Hi newhope - This screenshot speaks a hundred words ... {image} Took the trade yesterday (i.e., 20-12-2022) at ZigZag when all green TEMA. See the entry, TP1 (30 Pips), TP2 (50 Pips), and Stop Loss in the screenshot. Trust this will be self-explanatory. If you still need to know something please let me know. Trust this helps!! All the best!!
Thank you very much...
  • #73
  • Dec 21, 2022 9:32pm Dec 21, 2022 9:32pm
Quoting newhope
{quote} Thank you very much...
Hey newhope - I missed informing you that with this strategy I haven't tried any other pair besides Gold (XAUUSD).

I assume it will have the same results on other pairs too.

All the best!!
The best traders hone their skills through practice and discipline.
  • #74
  • Last Post: May 27, 2023 11:16am May 27, 2023 11:16am
Hi Ross please contact me I need to check something with you, thanks
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