Category: Advanced Indicator Set 1
Input parameters
Name
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Setting
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Default
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High
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High Time Series
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High
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Low
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Low Time Series
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Low
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Percent
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Real >= 0
|
0
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Discussion
The ZigZag indicator is a plot which connects the Local High and Local Low points in an alternate manner. In other words, a local high is followed by (and connected to) a local low, which is followed by and connected to a local high, etc.
The Local High is the high value of a bar, which is higher than the high of the preceding bar and at least as high as the high of the following bar.
The Local Low is low value of a bar, which is lower than the low of the preceding bar and at least as low as the low of the following bar.
A new Local High point in the sequence must be greater by the Percent value from the previous Local Low point to be included in the ZigZag indicator.
A new Local Low point in the sequence must be less by the Percent value than the previous Local High point to be included in the ZigZag indicator.
Note that the ZigZag indicator will have no values after the last local high or low, so the indicator may not go to the end of the chart.
NOTE. The ZigZag indicator CANNOT be used in trading strategies or neural nets used in trading strategies. This indicator was designed to be viewed as a sequence of trend lines through the entire set of data. It is not appropriate for use in a trading strategy because new data bars can cause the most recent trend line to change through past data. This in turn can cause the NeuroShell Trader signals to change in the past. Use this indicator ONLY for viewing in a static chart, but do NOT insert it in a trading strategy or a neural net used for trading.
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