Channel ZZ is a powerful VTL indicator for VertexFX trading platform
. It is an enhancement of the ZigZagindicator that uses additional
filters to eliminate smaller ZigZag levels.
The ZigZag points are identified
and filtered using the method specified by the Channel Type parameter. If the
Channel Type parameter is set to 0 as threshold, then height of the Channel
must be equal or greater to the value specified by the Channel Points (points)
parameter.
On the other
hand, if the Channel Type parameter is set to 1 as threshold value, then the
height of the Channel must be equal or greater than the value specified by the
Channel Percent parameter.
How Channel ZZ works?
Channel ZZ indicator gets calculated from the
oldest bar to the newest bar. It first find the ZigZag swing high or swing low
then it proceed to the next swing high or swing low. If the next detected swing
type is same as the previous one, it proceed further till we find the opposite
swing type. The distance between the original swing point and the current swing
point must be as per the rule specified in Channel Type setting. This process
is repeated from the oldest (first) bar to the latest bar.
Note: This indicator is used to
trade breakouts. When the price breaks above the recent channel High, a BUY
trade can be initiated. Similarly, when the price breaks below the recent
channel Low, a SELL trade can be initiated.
To use Channel ZZindicator download it from here, then place it at VertexFX VTL directory:
