ZigZag and Williams %R Swing Trend Strategy

Summary

This strategy combines ZigZag swing points with Williams %R to time entries in the direction of a detected trend. It looks for Williams %R to cross upward out of oversold territory for a long signal when the ZigZag direction is up, or downward out of overbought territory for a short signal when the direction is down. The listed defaults include a 14-period Williams %R, thresholds of -80 and -20, and a 1% stop with a 2% target.

The document describes filtering swing noise with ZigZag depth and deviation settings, and notes possible adjustments such as volatility-based settings, volume confirmation, and alternate stops. It warns of false signals in sideways markets, slippage, parameter sensitivity, and lag while waiting for pivots. The published backtest configuration specifies BTC/USDT futures on a two-day period, but supplies no performance results. The source logic also qualifies the narrative: it confirms a ZigZag direction state rather than directly requiring each newly identified pivot, and pivot confirmation can be delayed.

Key ideas

• The strategy pairs ZigZag direction with Williams %R threshold crossovers to trigger entries.
• Long entries require an upward ZigZag state and a Williams %R move above the oversold threshold.
• Short entries require a downward ZigZag state and a Williams %R move below the overbought threshold.
• The described risk controls use a fixed stop and target, while sideways conditions and delayed pivots can impair signals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.