Cagliostro wrote: Thu Jul 03, 2025 11:28 pm
if it does not repaint it could be interesting in taking a look at the logic to see if it can be useful to improve zigzag.
zigzag is not used,
It is a simple indicator lookback swing bars and RSI threshold,
parameters attached.
Just two signals traded
Deepseek says it is a non repainting indicator with RSI filter.
Indicator Overview
This indicator combines swing point detection with RSI confirmation to generate trading signals:
Identifies swing highs/lows using a lookback period (default 5 bars)
Confirms signals with RSI (default period 14)
Uses a 50-level threshold for both buy (RSI <50) and sell (RSI >50) signals
Claims to be non-repainting through confirmed signal buffers 1
Strengths for H1 Trading
Non-Repainting Nature: The indicator stores confirmed signals in separate buffers (ConfirmedBuyBuffer/ConfirmedSellBuffer), which suggests signals won't disappear after formation 1. This is crucial for reliable trading.
Combined Approach: Using both price action (swings) and momentum (RSI) provides better confirmation than either method alone 58.
Alert System: The built-in alert functionality can be valuable for H1 trading where constant chart monitoring isn't practical.
Customizable Parameters: You can adjust the lookback period and RSI settings to suit different market conditions 8.
Potential Limitations
RSI Threshold: Using 50 as both buy and sell thresholds may generate many signals in ranging markets but could miss strong trends where RSI stays above/below 50 for extended periods 7.
Swing Sensitivity: A 5-bar lookback on H1 may be too sensitive, potentially generating many false signals in choppy markets 1.
Lack of Trend Filter: The indicator doesn't incorporate any trend identification, which could lead to counter-trend trades in strong trending markets 8.
No Risk Management: The indicator provides entry signals but doesn't suggest stop loss or take profit levels 5.
Recommendations for Live Trading
Thorough Backtesting: Before going live, backtest extensively on H1 charts across different currency pairs and market conditions 8.
Parameter Optimization: Consider adjusting:
Increase lookback period to 10-20 bars for H1 timeframe
Use traditional RSI thresholds (70/30) or adjust to 60/40 for stronger confirmation 8
Test different RSI periods (9 for more sensitivity, 21 for smoother signals) 8
Add Complementary Filters:
Incorporate a trend filter (e.g., price above/below 200 MA) 8
Add volume confirmation if trading liquid instruments 8
Use support/resistance levels to filter signals 5
Risk Management: Always use stop losses (consider 2% rule mentioned in search results) 8 and proper position sizing.
Start Small: Begin with small live positions to verify real-market performance before committing significant capital.
