Combining ZigZag Swings, Moving Averages, and Parabolic SAR
Summary
This trading ruleset combines ZigZag swing points, fast and slow moving averages, and Parabolic SAR to generate entries and exits. A long entry requires a rising sequence of ZigZag lows, the fast average above the slow average, and price above SAR. A short entry mirrors these conditions with falling ZigZag highs, the fast average below the slow average, and price below SAR.
Exit rules retain the relevant ZigZag swing condition and use price crossing SAR in the opposite direction; moving averages do not participate in exits. The text also describes an optional start and end hour filter and identifies EURUSD on a 15-minute chart as the illustrated market and timeframe. It provides no backtest results, parameter values, risk controls, or evidence that the rules are profitable. ZigZag points can depend on subsequent price movement, so implementation and evaluation should account for potential signal revisions and avoid assuming historical turning points were available in real time.
Key ideas
- Long entries require higher ZigZag lows, a fast moving average above a slow one, and price above Parabolic SAR.
- Short entries require lower ZigZag highs, a fast average below a slow one, and price below SAR.
- Exits use the ZigZag swing condition and an opposite-side SAR relationship, without moving-average confirmation.
- An optional time window can restrict when signals are acted upon.
- The document gives rules but no evidence of profitability or detailed risk management.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.