ZigZags, waves, trends. - page 3
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it's us to confuse physicists :-)
Think of it as a custom in this anthill.
"Everything is mixed up in the Oblonsky household."
I looked at my knee - it didn't look like a wave. It looks more like a kink point. Actually, the inflection points are more conveniently called zigzag extrema (top bottom).
"Extremes" takes a long time to type and you can't pronounce it drunk on the first try... That's why it's like this.
But it is clear to all and does not allow for ambiguity.
Enough humour, get to the point.
What ZigZag is not:
A zigzag is not a piecewise price interpolator of the first degree.
It should be understood - all zigzags that are built (and tailed) in real time - they show the limits of these "hypothetical" interpolators, waves in the terminology of this forum thread.
If you draw a channel of standard deviation in the history between the two nodes of the zigzag, slightly backward from the vertices, you will see that very wave, until it was covered by the opposite one
You are correct, even scientifically speaking.
In nature, a wave crests and troughs are considered on water. Or maybe it isn't.) Doesn't matter.
In our case, in the markets, it is easier to recognize a wave up and a wave down.
A certain sequence, but any sequence, can be interpreted as a trend. Everyone already knows it.
Later we can classify the sequence and the dependence. In case you are wondering.
Here's my five cents on the subject.
A zigzag is different from trend waves. The rule used in trend waves is that a trend is considered to continue only when an extremum is updated. A zigzag doesn't care about that.
Here's the zigzag:
And here are the trend waves:
What are the good points of ZZs?
They're pretty tightly bound to Fibonacci levels.
It's manna from heaven for netizens.
Here's my five cents on the subject.
A zigzag is different from trend waves. The rule used in trend waves is that a trend is considered to continue only when an extremum is updated. A zigzag doesn't care about that.
Here's the zigzag:
And here are the trend waves:
Explain to me, why would ZZs with other larger parameters become waves and those with smaller parameters not?
Maybe looking at a different time range?
Then on a daily it could be trending in the opposite direction.
I suggested to look at one TF. To be clear, the parameter to be considered should be one.
With different parameters different conclusions are different.
Time changes the price.
A wave does not carry the energy of greed, fear, hope.
Price does not adjust to the trader.
The trader has to adjust to the price.
Explain to me, why would a ZZ with other higher parameters become a wave and a ZZ with lower parameters not?
It's not using large parameters, it's using each minimum lower than the previous one. This is the condition.
It does not use large parameters, each minimum is lower than the previous one. This is the condition.
On top of any zigzag it is possible to build a derivative of it, of a larger scale. Let's not argue about "chicken or egg" and which zigzag is the best :-)