Hi guys,
Wonder if anyone could help me with a zig zag technical indicator question. I currently use netdania charts (Forex @ DailyFX - PowerCharts from DailyFX | Forex Charts) and have been looking into this indicator. It’s about static values…I’ve attached 2 small pics, the first one shows the options on netdania charts (you can only change the %) the second pic contains the questions. Would be SOOOOO grateful if someone could have a quick look and help me out, would be massively appreciated…
Anyone at all??
Trading using a Zig Zag alone is a losing proposition.
The only thing a Zig Zag is really good for is marking past highs, or lows. The repainting factor makes it highly frustrating to try to call current tops or bottoms.
However, couple a Zig Zag, with some deftly placed pending orders based off of fib points determined by the easily spotted highs and lows the ZZ called, and you might make some money;)
Hi there,
All I can tell you is most indicators are lagging, period. Does not matter Zig zag, CCI, Rsi, you name it. I trade with blank chart, that’s it.
Well you asked: so I’m looking!!! LOL!!!
I’m sorry but I have to agree with Master Tang except for one slight difference and that is that I don’t think that there is ANY way you make money using the Zig Zag Indicator. Just Google it and read all the articles that you can find about it and you’ll see what I mean. When I started trading I also thought it was the ‘elusive Holy Grail’ because it ‘so accurately pinpoints highs and lows’ (or so it seems at a ‘rough glance’). The ‘percentage’ of ‘number of bars’ parameter’s that can be used before it’s deemed to be a ‘fixed’ turning point is hogwash. Why 10% or why three bars??? Why not 20% or five bars??? Not for me I’m afraid. The moment it re-aligns itself (price turns) then that ‘leg’ of the Zig or the Zag simply extends itself and the temptation to hold on to the trade UNTIL it Zigs or Zags again and ‘holds’ is just too tempting. That’s my experience with it anyway.
Sorry: I know it’s not what you wanted to hear but my purpose in life is to NOT ‘aid and abet’ you to lose money!!! LOL!!!
And here’s a very ‘apt’ saying by J. Welles Wilder Jnr. found his book ‘The Adam Theory of Markets’:
“Top pickers and bottom pickers become cotton pickers”.
If you want to trade using this ‘style’ of trading then learn what a high swing point is and a low swing point is and find a swing trading system.
Regards,
Dale.
yeah, If you use ZigZag, the signal is 75% late, 90% of the time,
Thanks to everyone who posted back, really appreciate it! Especially Dale
Thought I found the holy grail, what an idiot!!!
Thanks guys
