FTB-C000604 / Implementation concept

Inclusive Reversal Threshold

Inclusive Reversal Threshold is the policy that treats an exact reversal fraction as sufficient for ZigZag confirmation.

Advanced 1 linked topicEvidence-reviewed

Definitions

In plain terms

A move equal to 5.00% confirms under an inclusive rule; 4.99% does not.

Technical

The confirmation comparison uses >= tau for the selected fractional reversal in both directions.

Scope

Changing inclusive to strict alters boundary events and must be versioned.

Examples

  • A reviewer computes Inclusive Reversal Threshold on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • Changing inclusive to strict alters boundary events and must be versioned.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D08-F01-A02 Important

Evidence and governance

  1. Zig Zag indicator QuantConnect · official platform documentation

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: This package selects a close-only percentage-reversal variant and documents the difference.

  2. LEAN ZigZag source QuantConnect · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: A maintained implementation is evidence for one convention, not a universal market rule.

  3. Pine Script repainting concepts TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: Platform display behavior does not establish financial usefulness or predictive value.

  4. Closing Price Investor.gov · official standard

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: A close is not automatically an adjusted close and may vary by market session convention.

Reviewed by
fintech-builder-batch-011
Last reviewed
2026-08-09
Next review
2027-08-09
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.