[BlowFish]

If you want a flexible zig zag indicator you might want to look for Clyde Lees Swing_Lee_II. By changing parameters it can detect swings using lots of different methods.

Traderveritas it might be worth attaching the code as a text file as the forum software strips out a lot of the white space if you paste into the message.

[Sherlock]

Originally Posted by BlowFish »

If you want a flexible zig zag indicator you might want to look for Clyde Lees Swing_Lee_II.

Thanks for reminding me of those.

I looked at those a long time ago, together with the Pitchfork. Never did anything for me at the time but I'll dig them out again and will see if I can mimic the chart posted by Mike.

Sherlock

[BlowFish]

The nice thing about them is that by altering various parameters you can use a whole lot of different algorithms to determine what constitutes a 'swing'. It also has a function that prints volume on each leg. Seems potentially very useful to me though I haven't got round to finding a use for it!

[Sherlock]

The problem with zig zags ( imho ) is that the market can drift sideways for quite a while and you get too many false signals with resulatnt whipsaws.

I am more of a momentum player: when the momentum is at an extreem swing often it is an exhaustion of the move and you do a counter trend trade. However there is a fine line there, if it goes a tad further then you have moved into a parabolic move which (imho) is something you should never go against.

Sherlock

[traderveritas]

Originally Posted by BlowFish »

If you want a flexible zig zag indicator you might want to look for Clyde Lees Swing_Lee_II. By changing parameters it can detect swings using lots of different methods.

Traderveritas it might be worth attaching the code as a text file as the forum software strips out a lot of the white space if you paste into the message.

Blowfish,

I have attached the TS indicator to this post. I also apologize to all for cluttering up the thread with the inline posting. I can't find a way to edit or delete the post to clean things up. If I am missing something obvious let me know.

Gassah, since you started the thread if you can delete my post with the TS ZigZag indicator I would appreciate it.

Mike

[traderveritas]

Originally Posted by Sherlock »

The problem with zig zags ( imho ) is that the market can drift sideways for quite a while and you get too many false signals with resulatnt whipsaws.

I am more of a momentum player: when the momentum is at an extreem swing often it is an exhaustion of the move and you do a counter trend trade. However there is a fine line there, if it goes a tad further then you have moved into a parabolic move which (imho) is something you should never go against.

Sherlock

Sherlock,

One of the useful things that I got from NOT recently was Barros comment that the appearance of reversals (I guess this would be the zig) in one timeframe (his parlance of the 5/18/... day swings) is a warning of a coming end of trend in the next higher timeframe. I found this to be obvious once he stated this but something that hadn't occurred to me before. In the context of the ZigZag indicator I mentioned with multiple ATR levels I now look for the lower ATR indicator to show zig-zags and start thinking that a larger ATR reversal could be in the works. I then can look to other indicators, price/volume action for confirmation and trade entry.

Mike

[Sherlock]

Mike

Am not familiar (yet, hope so to become soon) is the EOD and longer period trading so cannot comment on that.

However intraday is fraught with fake outs and these are treacherous and in my honest opinion on the shortest timeframes (let's say below 500 - 800 ticks) Barros rule does not apply.

More often than not it turns out to be just the high, the low or the hesistation around the open of the day and depending on the momentum those moves mean either a continuation or a reversal.

If you are on the wrong side then it will cost you dearly and it is a tricky business to ensure you enter at the correct side. Breakouts intraday are now a no-no in my book as the times it makes a big loss have outweighed the gains (even if these were parabolic).

Sherlock

[bigbird]

Hi,

I have read NOT and found it to be quite relevant to my trading. However, I'm unable to apply the techniques because I'm using the NinjaTrader platform that does not have Barros Swing. I tried programming the indicator based on the information given in the book but have met with some roadblocks. Does anyone have the source text from Tradestation or any platforms that can be shared for me to implement in NinjaTrader? I do not have Tradestation to read eld or els files directly. Thank you.