FTB-C000603 / Implementation concept

ZigZag Down Leg

ZigZag Down Leg is the state in which the machine tracks a falling provisional low.

Advanced 1 linked topicEvidence-reviewed

Definitions

In plain terms

Lower closes extend the provisional low; a sufficient rise confirms it.

Technical

During a down leg, a strictly lower close replaces the provisional low; a rise of at least tau after min_bars confirms the low.

Scope

The active down leg is a state label, not a return prediction.

Examples

  • A reviewer computes ZigZag Down Leg on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • The active down leg is a state label, not a return prediction.

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. LEAN ZigZag source QuantConnect · first party technical publication

    Supports: preferred label, short definition, technical definition

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

  2. Pine Script repainting concepts TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition

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

  3. Closing Price Investor.gov · official standard

    Supports: preferred label, short definition, technical definition

    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.