Zig-Zag Peaky

[lemur6666]

Hello Members,

Back in 2018 when I was reading Steve's Peaky On Steroids User Guide Peaky it felt awkward to zoom out the chart to allow Peak HILO indi to do its magic. What was also a challenging was the fact that if had known of of Peaky HILO indi back in 2006, Peak Lo would had been different that it was in 2017. take a look at GBPUSD weekly

GBPUSDWeekly.png

I recall myself going through EURUSD weekly chart later on to break it into parts I could apply Peak HILO to those parts - in other words to apply Peak HILO to limited number of bars... but I failed.

But two weeks ago I came across an 'zig-zag-pointer-v2-indicator' by Dr. Richard Ganes. What was fresh about it, is the fact his indicator kept past occurrences of Z-Z Arrows. One would call it repainting trace. You can google for it and try the original indi to see what I saw.

That triggered my synaptic activity so I got back to the idea inspired by Peaky. I played with ZigZag on different time frames.

General conlusions are as follows. Market moves in Swings that are laid out by ZigZag, and markets will tend to ratrace Swings if they are of certain signifficance. Swings are being retraced by as far as 83,3% (or more) i.e. being exact 1/6 shy of the whole previous move.

But what makes an wave signifficant. I assumed Fibonnaci of 61,8% of the previous move in opposite direction to make Swing signifficant.

Entry rule can be formulated as follow: When the price is reaching 83,3% of previous Swing it is time to get in contra trend assuming current Swing will be also retraced to at least 61,8% or more. So you don't have to wait for for the peaks of zoomed out chart, but explore opportunities the follow from Zig-Zag and 61,8% retracement. Take a look at EURGBP Weekly chart to grasp what I am trying to say.

EURGBPWeekly.png

Before I get any further with that. Lets stop for a moment. If I am breaking a door that has already been opened (and closed), do let me know.

Cheers,Max

[lemur6666]

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[lemur6666]

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