Zig Zag Trend indicator by Spyros Raftopoulos

[Espartano2]

I would like to know if anyone knows the code (for Ninjatrader8) of the ZigZag Trend indicator, created by Spyros Raftopoulos,and published in Technical Analysis of Stocks and Commodities magazine at November 2003 (volume 21:11). This indicator stabilizes and validates the last leg of the original Zigzag, allowing its use for trading, despite some delay in confirmation.

[NinjaTrader_BrandonH]

Hello Espartano2,

Welcome to the forums.

I am not aware of a ZigZag Trend indicator, created by Spyros Raftopoulos that is compatible with NinjaTrader. I also do not see that indicator listed in our Ecosystem User App Share Center.

That said, this forum thread will be open for other community members to share their insight.

Let us know if we may assist further.

[DTSSTS]

ARE you looking to be able to access the values created by the zigzag indicator that ninja trader has Standard platform. I am not sure that is the case as you are referring to: "his indicator stabilizes and validates the last leg of the original Zigzag, allowing its use for trading"

my interpretation of Stabilizes would be confirming that the last zigzag high for example is actually the Last High. IF that is the case the only way to verify that would be the first plotted zigzag low after the high. OR are you just wanting to access the values more that the 1 bar the ZigZag Indicator offers the plot value

Creating a ZigZag Trend indicator I assume would be Higher Highs and Higher Lows would be Up Trend etc. You would have to look back to Currently being plotted High and also know what the 2 prev highs to that were as well and and the last 3 lows also

[Espartano2]

Thank you for your replies. The indicator created by Spyros stabilizes the last leg of the Zigzag by setting a minimum angle that the Zigzag must have in relation to N candlesticks behind, so that this last leg doesn't change anymore. In Metastock we can see the ZZT in the form of the attached file (ZZT in white color and usual Zigzag in green color). In the words of Spyros:
"One of the most common tasks a technical analyst engages in is detecting and defining price trends. Among the numerous indicators and techniques that can be used for this purpose is the zigzag indicator. The zigzag filters out moves of minor importance (noise), making the main trend more obvious. Further, the zigzag presents the major moves with great clarity, since it connects peaks and troughs with straight lines that are easy to interpret…. That article also presented my zigzag validity indicator, which can be used to validate the last leg. This article introduces the zigzag trend indicator, which handles the dynamic nature of the zigzag indicator more efficiently. The zigzag trend approach solves the validity problem of the dynamic last leg by incorporating zigzag into a clearly tradable indicator... Zigzag trend (ZZT) is a trend-confirming binary indicator. It returns 1 for valid uptrends and -1 for valid downtrends; all unconfirmed trends are rejected. Although it is based upon zigzag, ZZT is always valid, so unlike zigzag, its indications are not revisable. Since both its present and past indications are valid, ZZT-based studies and systems can be accurately and safely analyzed and backtested. The indicator usually performs better than other trend-detecting or confirming tools, as it avoids the whipsaws that are caused by price noise"

[DTSSTS]

just looking at the picture you sent looks like the Confirmations the the last lower plot is not the final plot of this move is because the uptrend starts plotting the next new High (which of course can got higher and higher) but the point is ONCE the uptrend plots a high enough upward move and actually plots starts then new High ZigZag Plot, then the Last low will never change and is locked,

I personally like to compare that I have a trend change when ZigZag shows a Higher Higher and a Higher Low and visa versa and like to run 2 sets of ZigZag evaluations and that i am in a upward move of the Bigger Trend and the lower trend is doing the same intra wave

[Espartano2]

Dear DTSSTS,
Thanks for your comment.
I use ZZT to decide if the trend is up (= 1) or down (= -1).
The chart I have attached shows that the common Zigzag changes a lot during the trend and that moving averages cross a lot or lag too much.
The last leg of the common Zigzag (green) has already turned down while the ZZT remains high.