MDSignal Logic: ZigZag and the C-Zone
The V2 system scores every trade by fixed rules. No gut feeling, no indicator salads, just a checklist every position must pass.
The ZigZag Filter
The ZigZag filters market noise and marks structural highs and lows. Only when the structure is clear does a trade candidate exist.
Candle Scoring
Every candle in the relevant area is counted and scored. The sequence of red and green decides whether a setup counts.
The C-Zone
When candle C forms a pullback low below the entry, the trade is considered strong enough to stay away from the stop. Historically, C-Zone trades have the best odds.
Example: entry 0.60, pullback low 0.575 → C-Zone active, stop below.
What is the C-Zone?
The area below the entry where a pullback low forms. It signals enough counter pressure to protect the stop.
Why ZigZag instead of RSI?
The ZigZag works with structure instead of abstract oscillator values. It shows what the market actually did.
Are there signals without a C-Zone?
Yes, but weaker ones. The journal separates both cases, and the numbers show the difference.