Showing posts with label Newton's Law Trading. Show all posts
Showing posts with label Newton's Law Trading. Show all posts

The Physics of Trading: Applying Newton’s Law of Motion to ZigZag Reversals

Author: Roberto Jacobs (3rjfx) | Featured on Forex Home Expert

1. Introduction

In the world of technical analysis, the ZigZag indicator is legendary for its ability to filter market noise and highlight the true structure of the market—its peaks and troughs. However, every veteran trader knows its greatest weakness: it repaints. A confirmed low today can disappear tomorrow if the price continues to drop.

To solve this, I developed ZigZag Reverses, an indicator that doesn't just track price; it measures Momentum Energy based on the laws of physics.