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FibonacciEtc

Contents

Some Examples Page 2

Overview 3Chart Analysis Indicators 3Scanner and RadarScreen Indicators 4

RadarScreen 4Scanner 5

Instructions for Appllying Fibonacci Indicators 6Chart Application 6

Chart Intervals to be Used by Each Indicator 6Formatting Fib Days Back Chart Indicator 7Formatting Fib Today Chart Indicator 8Formatting Fib Last Swing Chart Indicator 8

Applying the Scan Indicators to Scanner and RadarScreen 10Applying Scan Indicators to Scanner 10Applying Scan Indicators to RadarScreen 12

Overview and Instructions

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Some Examples

This is a Weekly chart of the Dow Jones Industrial Average on 10/20/11. Notice how price reversed at the 38.2% retracement of a trend starting in early 2009 then showing a pullback at the 50% shorter term Fib.

Two automatic Fib indicators are being used here, the Fib Days Back indicator and the Fib Last Swing indicator both described below.

A 10 minute chart of the @ES on 10/20/11. After a reversal at 1192.50 around 12:00 pm price retraced to the 50% Fib Days Back indicator set to track the previous day Fibs. After this pullback will price complete a 1-2-3 up to the 61.8% ??

Price at 2.55 pm

OverviewThere are two sets of indicators, one set for Chart Analysis and a second set for the Scanner and RadarScreen. The set for the Scanner and RadarScreen include the Chart Analysis indicators to enable the trader to see the fibonacci price action as scan selections are viewed in an adjacent chart window (see illustrations below).

Chart Analysis Indicators

When applied to a chart each indicator automatically draws lines and continuously updates Fibonacci retracement levels as defined in the indicator input by the user. By using the three chart indicators together a trader can find not only support and resistance for each fib level but see potential level confluence between all indicators applied. By applying multiple copies of an indicator and by using different time intervals one is able to potentially find higher probability trades. Like all other trading techniques it is desirable to use other indicators to time entry and exits. Example charts and scans are provided below. The user can set alerts on each of the three chart indicators so that an alert is triggered when price crosses the selected fib levels. The indicators for charts consist of the following:

1) Fib Days Back - This indicator automatically plots Fibonacci retracement levels for the input number of days or sessions as defined by the user. As an example if a trader wanted to find the Fib levels for 24 days back on a 5 minute chart it could be quiet tedious to use the fib drawing tool and go back 24 days to find the appropriate high and low swings to correctly draw the lines. Even 7 days would be quiet daunting. By using multiple copies of Fib Days Back with different look back days settings the user can easily see where multiple lines converge and make decisions as to the importance of these levels.

2) Fib Today - When applied to an intra-day or tick chart today's fibonacci levels are automatically charted to the right of the last bar on the chart. As a new daily high or low is made the fibs are redrawn.

3) Fib Last Swing – Designed primarily for very short term scalping and for catching a trend after a pullback, this indicator can also be used on longer term swings. It is designed to find the last significant swing and continuously update with changing conditions. The user can increase the Trend_Amplitude input to cause the indicator to look for a longer swing when desired.

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B

A

Fib Last Swing

Fib Days Back

Fib Today

Three indicators as they may appear on a chart

Notice price at points A and B where price action reversed at the Fib Days Back 61.8% retracement and again at the 50% level for Fib Today. Also see reversal at the 38.2% on Fib Last Swing indicator

Scanner and RadarScreen Indicators

Each chart indicator is also written for use in Scanner and RadarScreen. Sample screen shots are provided to illustrate how a scan may look. These indicators are as follows:

1) Fib Days Back Scan - By inserting in Scanner and/or RadarScreen and setting the desired inputs and alerts the user is able to find potential trades from a universe of stocks, futures or forex in the desired interval. Trades may be entered when filtered with other trigger indicators favored by the trader.

2) Fib Today Scan - This scan allows the trader to find potential very short term scalps and pull back entries for longer term trades determined by the user's trading style and plan. Often times a trader may see a market continue in the trend direction after retracing to a high probability fib retracement/support level of today's activity. These reversals should be confirmed by another trigger indicator selected by the trader.

3) Fib Last Swing Scan - For shorter term scalps the trader is able to find retracements to predetermined fib levels of the last swing. This is for extreamly short term scalps or for pull back entries for continuation trades.

RadarScreen

Here Fib Days Back Scan is applied in RadarScreen and the trader is being alerted that ADSK has again crossed below the 50% retracement of the previous day. One may expect another bounce such as occurred at 11:00 or price may continue to make a new daily low. The use of another indicator such as a trendline break, MACD or other indicator selected by the trader for confirmation may trigger an entry.

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Scanner

Here Fib Days Back Scan has been applied using the Scanner. Four possible trading candidates are offered from the closing of the last 5 minute bar. TEVA has reached a new high and is testing the previous day's high as well as today's high. Some traders might expect price to retrace at this time.

Here is what actually happened. Price retraced to the previous day's 23.6% then to the 38.2% which was near today's low and bounced. Note the possible use of Bollinger Bands at both the previous day's high and the present bounce at the 38.2%.

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Instructions for Applying Fibonacci Indicators

Chart Application

After having subscribed or requested a free trial the indicator will automatically appear in your list of indicators (it may be necessary to log off and then back on for the indicator to appear).

Notice the unique icon next to those analysis techniques which you have subscribed.

● Click on the desired indicator then click OK

● Next the Format Indicator box will appear.

● Format each indicator as per the inputs as described below

Chart Intervals to be used by each indicator

Fib Days Back can be applied to Intra-day charts, Tick charts, and Daily, Weekly, and Monthly.Fib Today can only be applied to Intra-day charts and Tick charts.Fib Last Swing can be applied to Intra-day charts, Tick charts, and Daily, Weekly, and Monthly.

See next page

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Formatting Fib Days Back Chart Indicator

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Fibs are plotted on Session when true, Date when falseNmbr of sessions or days to consider- see illustration on daily chart below for determinationNumber of bars from right side where Fib line text will startWhen true text will appear above Fib line, below line when false

When using symbols like $INDU, decimals may not be desiredDescription appears on Fib line right of %- indicates swing direction and number days back False will prevent price from showing on Fib lineFalse will prevent % from showing

Select the desired Fib lines to appear on chart, when falseline will not appear

Rounds price to nearest tradeable price increment- experiment with your symbols

Key the desired color for each Fib line or use theseDefaults

Select the desired alert level(s) if any. Alerts must alsobe configured in the indicator alerts tab

The “v1” is the line description. It means that the Fib trend is down and the LookBackSessOrDays is set to 1. Turn on/off with above input “ShowDescription”

Formatting Fib Today Chart Indicator

All inputs for Fib Today are the same as Fib Days Back except that Fib Today plots on the right side of the chart beyond the last bar. It is necessary therefore to use the Format → Window→ General sequence to set the “Space to the Right” to enough positions to clearly show the Fib lines and text.

Formatting Fib Last Swing Chart Indicator

All inputs for Fib Last Swing are the same except for one input, Trend_Amplitude. Fib Last Swing attempts to find the last significant swing on a chart. Sometimes a user may want to look further back to a more significant swing. This can be done by increasing the Trend_Amplitude. Usually increasing Trend_Amplitude by one or two will provide the desired result. However depending on the chart configuration the swing plot will sometimes become meaningless if Trend_Amplitude is more than the logic necessary to effectively determine a meaningful swing. It is intended to be set to 1, 2, or sometimes 3. The user should experiment with Trend_Amplitude using different settings and various chart intervals to achieve the desired result.

Trend_Amplitude should be set to 1, 2, or 3

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Fib Days Back applied to daily $INDU

When using intra-day charts it may appear difficultto readily determine the desired LookBackSessOrDaysto use. This can be easily determined by using a daily chart for your symbol and the Trendline tool. Format the tool to show the number of bars. Then easily draw a line to count the bars. Allow for a number of “cushion”bars left of the lowest low or highest high as shown. Apply that number in the intra-day chart. The indicatorwill maintain the Fib lines automatically during the “cushion” number of days.

Important - The larger the number of LookBackSessOrDays used the more bars should to be formatted in a chart. If after formatting Fib Days Back the Fib lines do not appear it may be necessary to format the symbol to a larger number of days. This indicator uses a larger number of bars on a chart than may appear necessary to the user. Therefore as an example when applying the indicator to a weekly or monthly chart use 20 to 40 years bars back. On a 5 minute intra-day chart it may be necessary to use 1 – 2 years. Experiment to find the desired outcome for the charts you use.

See next page

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Applying the Scan Indicators to Scanner and RadarScreen

Before inserting one of the Scan Indicators in the Scanner or RadarScreen a user should decide which Fib support and resistance levels reached by price is desired to find a symbol to trigger an alert and trade. Usually traders regard fewer trigger levels as the better choice. For example if a trader wants to know when price crosses above the high or crosses below the low for the day then Fib Today Scan may be used and both AlertFib_0 and AlertFib_100 set to “true”. In addition if the trader wants to know if price retraces to 50% and 61.8% of today's range then AlertFib_50 and AlertFib_618 would also be set to “true”.

If the above scenario is used on the Nasdaq 100 list of stocks the Scanner would return the stocks whose price has crossed any of those levels on the last closed bar for the interval being used. In RadarScreen with the appropriate formatting those stocks meeting the criteria would appear at the top of the list and marked as triggered on the last tick (real time notification). Through symbol and interval linking both local and global the trader may evaluate the list of potential trades with various intervals and desired confirming indicators.

A trader may elect which Fib Scan to use based on trading style. A trader desiring short term trades may use Fib Today Scan or Fib Last Swing Scan. A trader looking for longer term trades may use Fib Days Back Scan. These are general statements and many traders will use one or more scans with different settings to find a group of trading possibilities. For example some traders believe that Fib levels reached based on 4, 7, or 21 sessions/days back are more significant than shorter term swings. These traders might combine this longer term Fib support/resistance level with price reaching a S/R level on a Fib Today chart indicator as well as Fib Last Swing chart indicator. These chart indicators should be inserted in a linked chart enabling the trader to immediately evaluate each symbol returned by the Scanner or RadarScreen (see illustrations below).

Applying Scan Indicators to Scanner

For this illustration let's say a trader trades Forex (or the symbol list of Your choice) and wants to know which symbols are reaching new highs or new lows of the previous day or have retraced to the 50% or 61.8% retracement levels also based on the previous day. The trader is a short term day trader and likes to use the 10 minute chart interval. We will use all Forex symbols in the TradeStation custom symbol list but in reality a trader may limit the number of symbols to his/her preferred criteria (most heavily traded or other filters).

It is necessary for the user to know how to use the Scanner. These instructions are intended to assist in properly using the Fib scan indicators and not a general education on the Scanner. To become knowledgeable use the TradeStation resources and experiment with the Scanner and RadarScreen.

With a Scanner window open the following steps can be followed to set up the a scan for the above criteria:

● Click on the Insert->Scan menu sequence and enter a name for your scan. We will use the name “Fib Day's Back” then click Next

● Click on the shaded area at the top and a drop down list will appear, click Custom Symbol Lists then Forex (or the symbol list of Your choice) then click Next and the Insert Scan Criteria menu will appear.

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● Click the “Select Criteria” shaded area then click “Indicator” and the Select Indicator menu will appear.

● Click Fib Days Back Scan then OK and the Scan Criteria box will appear. Then click on the “+” next to the indicator name and change each line to look like the illustration below then click “Finish”.

● Click “Run” and a list of symbols will appear that meet the scan criteria (if any).

● Now click on the icon labeled “New Chart Analysis Window” and a chart window will appear. Insert the chart indicators, Fib Days Back, Fib Today, and Fib Last Swing into the chart as well as other indicators you may use. Make sure LookBackSessOrDays is set to 1 as is in our scan. Size the chart as desired. Some traders may decide not to enter a trade unless price has reached confluence on at least two of the indicators.

● Use Symbol link and Interval link so that when you click the symbol in the results pane the chart will change to that symbol and the same interval as used in the scan (see illustration below). Notice on the chart below that price crossed the 61.8% support / resistance level of the previous day on the last closed 10 minute bar. For help on symbol links and interval links see “Setting Up Window Links” in TradeStation help.

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Applying Scan Indicators to RadarScreen

For our illustration in RadarScreen we will change the symbol list to the Nasdaq 100. For simplicity we will use the same criteria as in the above Scanner example. The trader wants to know which symbols are reaching new highs or new lows of the previous day or have retraced to the 50% or 61.8% retracement levels also based on the previous day. The trader is a short term day trader and likes to use the 5 minute chart interval. We will use all Nasdaq 100 symbols but in actual usage the trader may customize the list (using volume or other filters) to suit personal preferences.

It is necessary for the user to know how to use RadarScreen. These instructions are intended to assist in properly using the Fib scan indicators and not a general education on RadarScreen. To become knowledgeable use the TradeStation resources and experiment with the Scanner and RadarScreen.

With a new RadarScreen window open the following steps can be followed to set up the a scan for the above criteria:

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● Click Insert->Symbol List and navigate to the Nasdaq 100 Index as shown. Click OK after selection. The Nasdaq 100 will populate the RadarScreen.

● When RadarScreen opened a new window, eight default columns were shown. From left to right they are “Last, Net Change, Net % Change, etc to “Volume Today”. Since these are not used in this illustration delete each one by selecting the column heading and using the delete key. The only columns remaining should be Symbol and Interval.

● Right click on the Symbol heading, select Format All Symbols, select Intra-Day and set interval to 5 minutes. Click OK.

● Right click on the first symbol (APPL) and click “Insert Blank Row”. This separates the label rows from the symbols so as not to include them in the sort.

● Click Insert->Indicator and select Fib Days Back Scan, click Add-> then OK.

● Now to format the scan click Format->Analysis Technique->All Analysis Techniques. In the box on the right side select Fib Days Back Scan then click Format.

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● Change the Inputs as shown. Select the General tab and change “bars study will reference” and “Load additional data” as shown below. Select the Alerts tab and change as shown below. As each change is made click OK.

● You will now see data populate the columns we have selected as alerts. Next we want to delete the columns we will not be using. Right click on a column, click Show/Hide Plots and uncheck the unused columns. RadarScreen will allow you to uncheck only one column at a time.

When complete your columns should look as shown.

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● Next click Format->Sort and make settings as shown below.

● Now click on the icon labeled “New Chart Analysis Window” and a chart window will appear. Insert the chart indicators, Fib Days Back, Fib Today, and Fib Last Swing into the chart as well as other indicators you may use. Make sure LookBackSessOrDays is set to 1 as is in our scan. Size the chart as desired. Some traders may decide not to enter a trade unless price has reached confluence on at least two of the indicators.

● Use Symbol link and Interval link so that when you click the symbol in the RadarScreen pane the chart will change to that symbol and the same interval as appears in the Interval column (see illustration below). For help on symbol links and interval links see “Setting Up Window Links” in TradeStation help.

As price crosses above or below one of the alert columns we have set, RadarScreen will move that symbol to the top of the list and show the yellow marker on the right side. Notice price is crossing below the 61.8% of the previous day for STX.

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