i need to know how to calc the ZigZag and how to draw in the chart
(Stock market and Techincal Analysis)

Hello mohdy!
Here's a link that shows how to draw the ZigZag indicator and explains
how it could be used:

ChartSchool - ZigZag
http://www.stockcharts.com/education/IndicatorAnalysis/indic_ZigZag.html

In case you're interested, this link was found in the following site,
which shows how to calculate and use several other indicators:

ChartSchool - Indicator Analysis
http://www.stockcharts.com/education/IndicatorAnalysis/


Google search terms:
zigzag "technical analysis" formula


I hope this helps!
Best wishes,
elmarto

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Request for Answer Clarification by mohdy-ga on 15 Feb 2005 14:54 PST

Hi
I visit this web page before and it did not give me anything when i
applied to the zigzig it give you a wrong information , what i need
the formula

thanks

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Request for Answer Clarification by mohdy-ga on 15 Feb 2005 15:28 PST

by the way if you apply it to AMGN it will give you wrong result

thanks

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Clarification of Answer by elmarto-ga on 15 Feb 2005 15:34 PST

Hello mohdy,
There is no clear cut formula for the zig zag indicator like, for
example,  the Moving Average indicator. The basic procedure to draw it
is the following:

a) Decide a percentage filter (for example 10% if you want to filter
out all movements less than 10%)
b) Choose an arbitrary date point in your chart.
c) Move forward until you see that price rises or decreases 10% or
more from your chosen point. Draw a line that connects your original
point and this one.
d) Let's assume that it rose 10% or more. Now you keep extending the
line forward until it falls 10% from the highest high price in the
"rising period". When this happens, connect that highest high with the
new 10% lower price. This could result in erasing a part of the
previous line, because you don't know that the highest high is
actually a highest high until you see price drop 10%.
e) Repeat this procedure .

As I said, there is no formula for this indicator. Charting packages
use programming algorithms to draw this indicator, but there is no
equation to compute it in an analogous way to the Mov Avg or
Stochastic indicators.

Please request further clarification if you have any other doubts.

Best wishes,
elmarto