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Old 01-16-2008, 06:02 PM
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MP -- WHY the price moves down and up on the zigzag

Quote:
Originally Posted by dvarrin View Post
Hi,

I don't understand how this system can be so good. If the zigzag indicator shows a top, the price should move down, but the price could go down a bit and go back up and make a new high. Then on the chart we'll see that the zigzag indicator has changed, but in fact, when we look back in the chart, we might have followed a lot of false signals that are not showed on the chart anymore.

Does the nonlag zigzag limit this repainting?

For AVERAGE conditions, the zigzag along with zigzag pointer and z-z1 will show you exit positions, BUT PLEASE NOTE SOMETHING THAT HAS BEEN HAPPENING SINCE XMAS ------ the price will move in the direction you expected BUT THEN REVERSE AT THE 15% FIB, moving back up to form a dbl top ! (assuming the prior move was UPWARDS ! --- for a short, reverse the directions)

once it forms the top, and often goes a bit above, it will then head down on the next MARKET REVERSAL, which occur at 10:30 am, noon, 10:30 pm and midnite EST TIME !

and yes, sometimes it do and sometimes it dont but mostly it do, so set your reversals to tp at the 15% fib and see if it continues down or not --- almost always it wont until that double top is formed !

enjoy and trade well

your humble servant

mp
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