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FT TOOLS


 

ENCAPSULATION


Press the icon above to toggle Encapsulation© On or Off. Encapsulation© shows the “next” time period bar on the same chart as the “own” time period.

 

Fibonacci Ranger


The Fibonacci Ranger (FIX) tracks the past "n" number of bars for it's calculations. The default is set to 3 bars. To use this indicator, click on the Fix Fibo Ranger button on the Toolbar and then click on a high or low bar. If applied to a high in an up trend, the Fibo Ranger will search for the lowest low of the past 3 bars, ignoring inside bars, and then plot a Fibonacci Ratio of 1.764 up and down from that point as a white dashed line. These lines set up possible support and resistance points for upcoming action.

Every time the market makes a new high or low, you can re-plot the Fibonacci Ranger. Do not change the parameters until you have determined whether the 1.764 value is not valid for the instrument you are trading. This tool is not intended to be used by itself but as part of a trading plan Its purpose is to add confidence to new trades taken on a valid signal.

    The Live Fibo Ranger functions in exactly the same way, but the program chooses the highs and lows automatically.

 

High Probability Fibonacci Zones


Press the icon above to toggle the Fibonacci Zones Next Period On or Off. These zones show possible support and resistance areas.

When you press this button on an INTRADAY/DAILY/WEEKLY chart the actual High Probability Fibonacci Zones table for the active symbol will show on the screen.

The zone probabilities are calculated using the daily data for the symbol. The number of daily bars for the charted symbol is shown in the probabilities window. For example, '# DAILY BARS 3323' means INTC has 3323 daily bars in its file.
Close Zone is the zone in which the daily bar closed the previous day. Open Zone is the zone in which the daily bar opened today.
In the example above, the probability table shows that the close zone = 3 and the open zone = 3.  Zone 3 is highlight in blue.  Looking to the zones to either side of the highlighted zone (i.e. zone 2 and zone 4) we can see that historically 60% of the time prices reached zone 2. If zone 2 was reached we will then know that this zone acted as valid support 63% of the time. We also know that there was only a 22% chance that Zone 1 will be reached and if it was reached there was a 31% chance that it acted as support. Since Zone 1 is an extreme, prices tended to go back to zone 2.
On other hand, 80% of time prices reached zone 4. When zone 4 was reached, 57% of the time it acted as valid resistance.  35% of the time zone 5 was reached and in these cases 64% of the time zone 5 acted as valid resistance. We also know that 12% of the time zone 6 was reached and in these cases 56% of the time it acted as valid resistance. Since Zone 6 is an extreme, prices tended to go back to zone 5.

 

Fibonacci Zones Higher Period


Press the icon above to toggle the Fibonacci Zones Higher Period On or Off. These zones show possible support and resistance areas based on the chart’s highest period.


 

John Jackson Zones


These zones are support and resistance zones.
They also generate probabilities tables as the Fibonacci Zones Next Period do. The zone probabilities information is used in the same way as the Fibonacci Zones Next Period probabilities table.
 

 


Trading any market carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading, and seek advice from an independent financial advisor if you have any doubts.

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Copyright © 1996-2002 Fibonacci Trader. Last updated: January 07, 2015 All names mentioned in this document are trademarks or registered trademarks of their respective owners.