How to Trade
You can consider the Trend filtered ZigZag indicator as the hybrid ZigZag indicator which combines trend and ZigZag indicator. In general, you can apply the same trading techniques used for the normal ZigZag indicator to the Trend Filtered ZigZag indicator. For example, you can apply the fibonacci retracement or expansion technqiues to gauge the precise turning point using the Golden ratio and other fibonacci ratios like 0.382, 0.782 and 1.618, etc. Remember that the repeating patterns are the characteristic of the fractal wave. Therefore, Trend Filtered ZigZag indicator will comply with fibonacci ratios and golden ratios with higher precision. Likewise, you can base your elliott wave counting or Harmonic Pattern Trading using our Trend Filtered ZigZag indicator too. You will get the unique trading performance due to the detrending effect (i.e. trend filtered effect). Alternating peak and trough in the Trend Filtered ZigZag indicator is related to the moving average cross over too. This property makes this indicator very interesting for our trading. If you wish, then you can use the provided Moving Average together with the Trend filtered ZigZag indicator. You can visually track the moving average cross over and zigzag at the same time.
One interesting point is that you will be able to detect the price area where the energy of the trend is exceeding the engery of fractal wave. To our best knowledge, such an interesting phenomenan can be only observable from our Trend Filtered ZigZag indicator for the first time in the trading community. This differentiation helps you to identify the good timing when to apply trend based trading strategy and when to apply pattern based trading strategy. Knowing when to apply trend based techniques and when to apply pattern based techniques, you can improve your profitability.
Only input you need to concern is Detrend Period. Use Detrend Period > 0 for the detrending effect. If Detrend Period = 0, then the indicator become normal ZigZag indicator.
Excessive Momentum Trading
Please check out the Excessive Momentum Trading with Trend Filtered ZigZag indicator for the possible trading setup.
Other Recommended tools
These tools are effective to trade the repeating patterns based on the Equilibrium Fractal Wave. These tools are automated more for the powerful trading experience.
Where to learn Equilibrium Fractal Wave
If you are interested in learning the Equilibrium Fractal Wave, you need to understand the price pattern table first. Free or paid book is available for your trading. Paid book contains more trading strategies which you can use for your practical trading.
Link to Free Book: http://algotrading-investment.com/2018/02/12/winning-financial-trading-equilibrium-fractal-wave/
Link to Paid Book: http://algotrading-investment.com/portfolio-item/financial-trading-five-regularities-nature/