1. One way to get a reasonable early alert about a sideways movement is using an AMA (adaptive MA, Perry Kaufman, etc.). The AMA will start moving horizontally.
2. Although Mike is right about the Zig looking into the future and so on, don't throw out the Zig just yet. a. Look at the zig.afl from Eric Langen in the AB Library. He computes the point of no return for the Zig. This gives an impression when you can use the Zig data without looking into the future. And yes indeed often you are late, but on occasion you are not. b. The Zig (especially the ZigHL which connects H and L instead of C), can provide good statistical info about Trough-Peak size and time from Pk-Pk and Tr-Tr and Pk-Tr ( individual,avg,SD). This, especially in the Forex gives a good idea what you can expect in the future. Joris From: [email protected] [mailto:[email protected]] On Behalf Of Mike Sent: Tuesday, March 30, 2010 8:40 PM To: [email protected] Subject: [amibroker] Re: Momentum filter question? More often than not, Zig will not be useful. Zig looks into the future. By the time you're able to verify the Zig pivot without looking forward, it's too late to do anything with it. Mike --- In [email protected] <mailto:amibroker%40yahoogroups.com> , "Richard" <richpa...@...> wrote: > > Hello, > > I am looking to code "momentum filter" to filter out any signals preceded by sideways movement. I want to see a price action before the signal with the substantial movement up or down. Has anyone done anything similar? Could you share any ideas on how to implement this kind of filter? > I was thinking about using, SAR indicator and measuring number of bars between SAR and $ cross (top to bottom of SAR leg) and multiplying by the % Zig change for the last High to Low. Is this idea any good? I am looking basically for the way to filter out sideways price action even if I have to forego breakouts signals from sideways consolidation. > > Regards > Richard >
