Using Cumulative Volume to Compare Percent-ZigZag Price Swings
Summary
The indicator applies a percent-variation ZigZag to price and accumulates volume across each swing. When the ZigZag forms a peak or trough, it displays the volume accumulated during that segment and begins a new accumulation. The adjustable percent-variation setting determines how much price movement is needed to register a new swing endpoint.
The stated purpose, drawing on Wyckoff and Weis analysis, is to compare the strength of ZigZag sections using their total volume rather than judging individual volume bars in isolation. The document describes an indicator concept and its implementation, but gives no chart examples, tested thresholds, or evidence that a particular volume reading predicts price direction. Results depend on the selected ZigZag percentage, and the document does not specify a trading or risk-management system built around the measurements.
Key ideas
- The indicator segments price into swings using a percent-variation ZigZag.
- It accumulates volume within each segment and displays the total when a peak or trough forms.
- The percent-variation setting controls the price move required to register a new swing endpoint.
- Cumulative volume is intended to help compare swing strength beyond what individual volume bars show.
- No predictive results or complete trading rules are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.