SPDR S&P 500 (SPY)

[learningboutinv]

Be, thanks for posting that video. BTW- I am also looking at Zig/Zag. It's pretty interesting and used in order to confirm a trend, like renko, and P&F charts.

From my 60min chart, notice the Zig/Zag (dark blue line) back up. It uses trend reversals as well. It is typical for people to use 5%/10%/15% for the price movement. I'm new to zigzags but, personally, I think a 5% move is pretty big so I wouldn't use 10% or 15% unless it was on the weekly charts. I'm looking at ZigZag for the 60min charts because the realtime charts that I use do not support 60min renko. I've changed the % from default of 1% to 2% to avoid whipsaws. I think 2% is pretty generous since at $NDX 1855 that equates to 37.1 $NDX points. I think we have to hit the 20dma (~1883) sooner or later before price continues with the downtrend or we start a new upleg. We could also hit the 34dma, the white like at ~1896. (Hard to believe about a new upleg, but... you never know. Look at the renko chart I posted perviously and the symmetry between the current downtrend on the $NDX from June08 with July07's drop.)

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30347479

For example: "ZigZag set at 10% with OHCL bars would yield a line that only reverses after a change from high to low of 10% or greater. All movements less than 10% would be ignored. If a stock traded from a low of 100 to a high of 109, the ZigZag would not draw a line because the move was less than 10%. If the stock advanced from a low of 100 to a high of 110, then the ZigZag would draw a line from 100 to 110. If the stock continued on to a high of 112, this line would be extended to 112 (100 to 112). The ZigZag would not reverse until the stock declined 10% or more from its high. From a high of 112, a stock would have to decline 11.2 points (or to a low of 100.8) for the ZigZag to reverse and display another line."