V. 21:11 (26-32): The Zigzag Trend Indicator by Spyros Raftopoulos

V. 21:11 (26-32): The Zigzag Trend Indicator by Spyros Raftopoulos
Item# \V21\C11\233RAFT.PDF
Availability: In Stock

Product Description

The Zigzag Trend Indicator by Spyros Raftopoulos

Zigzag is a powerful noise filter, but it’s not without its problems. Here’s a technique that incorporates the power of zigzag into a more valid and tradable indicator.

The popularity and usefulness of the zigzag indicator can be ascribed to three important characteristics. It is an effective noise filter; it graphically presents the main trend with great clarity; and it is still a very low-level indicator, in that its final interpretation of price is not filtered through one or more algorithms, but is based upon the price itself.

While these are important advantages, zigzag’s main disadvantage is its dynamic nature. The indication of a trend’s direction (provided by the “last leg” of zigzag) is revisable, and can therefore be misleading. Further, the indicator cannot be used in mechanical systems, since the backtesting of such systems should exclude any revisable parameters in order to be valid and accurate. I described the problem of the dynamic last leg in my previous S&C article, “Zigzag Validity.” That article also presented my zigzag validity indicator, which can be used to validate the last leg.

This article introduces the zigzag trend indicator, which handles the dynamic nature of the zigzag indicator more efficiently. The zigzag trend approach solves the validity problem of the dynamic last leg by incorporating zigzag into a clearly tradable indicator.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order