ZIG(close,5) represents the 5ZIG turn of the closing price. What is a ZIG turn?

The ZIG indicator (Zig Zi Turn) is a non-mainstream indicator that usually goes unnoticed. Overlaid on the main image.

This indicator mainly indicates the turning points of wave peaks and troughs, and at the same time, outlines the general outline of the security trend.

The continuous polyline of ZIG can determine the character of the long-short game of the trading variety and the future two-way space. At the same time, it can form an intuition for the rotation of transaction prices.

How is ZIG calculated mathematically? For example, the peak/trough value of a wave, how to determine the "future function" of the wave peak/trough value:

1. What is the "future function":

The so-called "future function" is Refers to a function that may refer to future data, that is, a function that refers to or uses data that has not yet occurred to revise previously issued judgments.

Specifically, the indicator values ??displayed after the end of this cycle, including line segments and buying and selling prompt signals, may change positions or disappear after new data occurs in the future.

In layman’s terms, an indicator formula containing uncertainty judgment is an indicator formula containing a “future function”.

The basic characteristic of indicators containing future data is that the buying and selling signals are uncertain. Often a buy or sell signal is issued on a certain day (the same is true for the turning point of a line segment). If it continues to fall or rise the next day , the signal disappears and is marked at a new location tomorrow.

1. Use cross-period data.

This is the most insidious method, and it is even more harmful. For example, when quoting this week's weekly or this month's monthly data on the daily line, the signal will be successful if the stock price rises this week or this month; if the stock price falls, the signal will automatically disappear. It cannot be tested using formula detection. We often see using KD monthly, weekly and daily golden crosses at the same time to select stocks, which falls into this category. It seems that the success rate is very high, but it is actually false.

2. Specify the buying and selling date or buying and selling price.

It usually occurs in trading systems. For example, specifying the lowest price to buy, the highest price to sell, or specifying the increase or decrease range, these cannot be realized during the transaction process, so although the test success rate is very high, it actually has no practical value.

2. Detection method of future data

After knowing the characteristics of the future function, we have the basis to recognize whether there is future data in the formula. How to identify it in specific applications, there are the following methods :

1. Any functions that use ZIG ZigZag type and cross-period data (as mentioned above) in the formula should be regarded as using future functions.

2. Check whether the buying and selling signals are confirmed. Whenever a signal that has appeared drifts in a new day or in several periods, there is a future function in the formula.

3. Identify from the indicator chart. If the buying and selling prompt signals are extremely accurate (you should look at multiple pictures), that is, if there are no mistakes, there must be a future function.

4. Use stock software to identify. A. Use the system test platform of "Analyst Software" to detect whether it contains future data. The system will automatically remind you. If you want to see for yourself the stability of the signal and the historical change process, the analyst's time and space tunnel can turn back time and take you back to the past. It is clear at a glance how the signal is generated and how it disappears. B. It is simpler to use "Trend Wuzhuang Decision System Software". Right-click the name of the formula in the "Management Panel" on the left, and click "Formula Detection" in the drop-down menu that appears. You can also use The "Wuzhuang Mode" in "Wuzhuang Training" can go back in time and look at each trading day, and you can clearly find whether there are any future functions.

3. The dangers of future data in actual combat

1. Using future data can easily achieve a seemingly very high success rate without spending any effort. The buy signal sent out is worthless in actual operation and is a naked deception. In actual combat, it brings painful losses and consequences to investors.

2. What is the key to future data? In essence, it beautifies history but cannot reveal (enlighten) the future in a true sense. It attributes all the credit in history to itself and perfectly avoids all historical mistakes. It reveals only a past tense future, not a realistic future.

Indicator function

(1), cost distribution

Usage: COST(10), indicating the price of 10% profit, that is, 10 % of the positions are below this price, and the remaining 90% are above this price as hold-up orders. This function is only valid for the daily analysis period.

(2), the first M wave peaks - the first M ZIG steering wave peaks.

Usage: PEAK (K, N, M) represents the value of the first M wave peaks of ZIG (K, N). M must be greater than or equal to 1.

For example: PEAK (1, 5, 1) represents the value of the previous wave peak of the highest price ZIG of %5.

(3). The first M wave crest positions—the first M ZIG turning wave crests to the current distance.

Usage: PEAKBARS (K, N, M) represents the first M wave peaks of ZIG (K, N) to the current period. M must be greater than or equal to 1.

For example: PEAKBARS (0, 5, 1) represents the number of cycles from the previous peak of the %5 opening price ZIG turn to the current period.

(4) Parabolic steering

Usage: SAR(N, S, M0, N is the calculation period, S is the step size, and M is the extreme value.

For example: SAR (10, 2, 20) means calculating the 10-day parabolic turn, the step size is 2%, and the limit value is 20%.

(5), parabolic turning point

Usage: SARTURN (N, S, M), N is the calculation period, S is the step size, M is the extreme value, if an upward turn occurs, it returns 1, if a downward turn occurs, it returns -1, otherwise it is 0, Its usage is the same as that of the SAR function.

(6), the first M trough values ??- the first M ZIG steering trough values.

Usage: TROUGH(K, N, M) represents the value of the first M troughs of ZIH (K, N). M must be greater than or equal to 1.

For example: TROUGH (2, 5, 2) represents the lowest price of %5. The value of the first two troughs of ZIG steering.

(7), the position of the first M troughs - the distance from the first M troughs of ZIG steering to the current value.

Usage. : TROUGHBARS(K, N, M) represents the number of cycles from the first M troughs of ZIG(K, N) to the current period. M must be greater than or equal to 1.

For example: TROUGHBARS(2, 5 , 2) Indicates the number of cycles from the first two troughs of the %5 lowest price ZIG to the current period

(8), Profit ratio

Usage: WINNER (CLOSE) indicates. The profit-taking ratio of selling at the current closing price.

For example: returning 0.1 indicates a 10% profit-taking: WINNER (10.5) indicates a profit-taking price of 10.5 yuan. This function only analyzes the daily line. The period is valid.

(9), ZigZag

Usage: ZIG(K, N), when the price change exceeds N%, K means 0: opening price, 1: Highest price, 2: Lowest price, 3: Closing price.

For example: ZIG(3,5) represents a 5% ZIG turn of the closing price.