The Zig Zag Validity described in Spyros Raftopoulos’ article can be easily implemented in the NeuroShell Trader by combining a few of the over 800 built in indicators and the ZigZag indicator found in the Advanced Indicator Set extra cost Add-on. To create the indicators, select ‘New Indicator …’ from the ‘Insert’ menu and use the Indicator Wizard to create each of the following:
Z
ZigZag(High, Low, percent)
last
SelectiveMovingAverage (Lag(Z,1), OR2(AND2( A>B(Z,Lag(Z,1)), A<B(Lag(Z,1),Lag(Z,2) ), AND2( A<B(Z,Lag(Z,1)), A>B(Lag(Z,1),Lag(Z,2) ) ), 1 )
pc
AbsoluteValue ( Divide ( Mutiply ( Subtract ( Close, last ), 100 ), last ) )
SD
OR2 ( AND2 ( A>B(Z,Lag(Z,1), A>B(Lag(Z,1),Lag(Z,2)) ),
AND2 ( A<B(Z,Lag(Z,1)),A<B(Lag(Z,1),Lag(Z,2)) ) )
res:
A>=B(pc,percent)
ZigZagValidity
IfThenElse( And2(Max(res,2),SD), 1, res )
ZigZagInvalid
CrossBelow( ZigZagValidity, 0.5)
ZigZagUpTrendConfirmed
CrossAbove ( AND2 ( A>B(Z, Lag(Z,1)), ZigZagValidity ), 0.5 )
ZigZagDownTrendConfirmed
CrossAbove ( AND2 ( A<B(Z, Lag(Z,1)), ZigZagValidity ), 0.5 )
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