3.2.1 Fibonacci Retracement

• Buy - Fibonacci retracement around X%

  

  Figure 3.1: Fibonacci Retracement.

• Sell - Fibonacci retracement around X%

Parameters available:

• t - the duration/window used for calculation

• t1 - the minimum duration preceding the peak/trough to attain x1% higher/lower from the previous price

• t2 - the minimum duration succeeding the peak/trough to attain x2% lower/higher from the previous price

• x1 - the minimum percentage preceding the peak/trough for a given t1 duration

• x2 - the minimum percentage suceeding the peak/trough for a given t2 duration

• ph - the maximum percentage before price is triggered above Fibonacci level

• pl - the maximum percentage before price is triggered below Fibonacci level

• Fib level 1(%) - One of the three Fibonacci levels for price trigger

• Fib level 2(%) - One of the three Fibonacci levels for price trigger

• Fib level 3(%) - One of the three Fibonacci levels for price trigger

• Intraday/Close - if Intraday is selected, high and low price will be used for calculation of high peak and low peak. Otherwise if Close is chosen, only the close price will be used

• Rule type - This parameter controls the different intervals: daily (default), weekly or monthly. This is similar to the concept as viewing your chart in daily, weekly or monthly view. E.g. by setting a rule type to daily, the system will screen for patterns that match on a daily basis

• Data type - This parameter is ONLY applicable when you set the rule type to WEEKLY or MONTHLY There are two data settings available:
  (1) Completed
  (2) Progressive

• To illustrate, assume the following
  a) today is 28th June 2007, Thursday, 8pm after market closed
  b) first trading of the week is Monday

• if we set the data type to:
  (1) Progressive Data The system will consider 25th, 26th, 27th up till 28th June ie the latest trading date where the data is available to the system. Essentially, the system treats as if the week has ended on 28th June or up to the point where the trading data is available.

  (2) Completed Data Contrast this with (1), the system will not consider the data from 25th to 28th June under this setting since there is still tomorrow, 29th June which is a trading day, before the week ends/completes. The system will consider only the prior week 18th to 22nd June, where it is the last/latest week with full/completed data.