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

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.