March 6, 2014
Zig-zag indicator, as well as other functions using it (Peak/Trough, PeakBars, Troughbars), inherently look into the future. As such they should not be used in trading system formulas without taking precautions. The only way to fix the ‘problem’ is to delay the signal as long as it takes for zig/zag to stabilise last ‘leg’. The delay is variable and depends how much time it takes for defined percentage change to occur in the price series since last peak/trough.
Ready-to-use solution is presented in the Traders’ Tips section of the AmiBroker members area:
(NOTE: access to members’ area is limited to licensed users only, if you forgot your password use reminder at http://www.amibroker.com/login.html)