Fibonacci Channel

Fibonacci channel uses market peaks and troughs for predicting major changes in trend direction and levels of support and resistance.

When potting the Fibonacci channels, the most important is to identify the peaks and troughs correctly.  If you manage to detect the appropriate tops and bottoms, you will be able to forecast the support and resistance levels weeks and months into the future. Use only major tops and bottoms to find the base line of a Channel with one or more significant side swings. The widest swing for the period of the base line will be used as a trigger line.

 

 

Plotting Fibonacci Channel in the chart

 

Select the Fibonacci Channel option in the Objects menu of the chart toolbar:

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When you select this option, the cursor will become finger-shaped: fingershape

 

In order to plot the channel levels, left-click on a beginning of the channel, and drag the cursor to the end of the channel (providing size). The Fibonacci Channel lines will be automatically plotted in the chart with the ratio and the corresponding price indicated at each line.

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When you left click on the plotted Fibonacci Channel object, it will become highlighted, i.e. four dots will appear at the edges of the lines. If you hover the cursor over a dot, it will turn into a crosshair allowing you to drag the dot over the chart thus resizing the Fibonacci object:

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You can also drag the plotted Fibonacci Channel object over the chart by left-clicking on its line and holding the mouse button.

 

Right-clicking on the Fibonacci Channel opens the standard context menu for manually plotted objects:

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To delete the Fibonacci Channel object left-click on it once and choose the Remove Selected Objects option on the chart toolbar.

 

Fibonacci Channel Settings

 

You can customize the view of the Fibonacci Channel object by using the advanced Settings dialog box, allowing to show/hide and change the view of each line.

 

The Fibonacci Settings dialog box appears as displayed below:

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Properties description

 

Id

The unique number of the chart object (non-editable)

 

Size

The size (100%) of Fibonacci Channel that shows the distance between the plotted lines of 0% and 100% in pixels.

Default value is 40.

 

Extension

This drop-down box allows you to select the lines’ extension:

-        limited

-        extended

-        extended right

-        extended left.

 

This setting is applied to all the lines at the same time. By default the ‘limited’ option is selected

Show labels

 

When this option is enabled, percentage labels appear at the end of each line. By default it is enabled.

 

The Levels section contains the individual settings for each line:

 

▪        The checkboxes in the very left column are used to show/hide the individual levels. When the checkbox is enabled, the corresponding line will be displayed in the chart. By default, only five lines are enabled (as displayed above)

▪        The edit-boxes next to the checkboxes are used to change the percentage levels for each line. The default values of the levels are:

-0%
-23.6%
-38.2%
-50%
-61.8%
-76.4%
-86%
-100%
-118%
-127%
-161.8%
-261.8%
-423.6%

▪        Color - Left click on the color sample to select the line color

▪        Width - The width of the line. Use the drop-down box to select one of the three available options: 1 pixel, 2 pixels or 3 pixels.

▪        Style - The style of the line. The drop-down box includes three options: solid, dashed and dotted.

 

Note: If the selected width is 2 pixels or 3 pixels, the Style drop-down box will be unavailable with the solid line preselected.

 

Note: The Percentage edit box, Color button, Width and Style drop-down boxes are available only for enabled lines.

 

The ‘Save level settings as default’ button saves the settings of all the levels, so that they will be applied to all the Fibonacci Channel objects created thereafter.

 

After you’ve made all the necessary changes to the Fibonacci object, click Apply to view the changes in the chart; click OK to confirm the changes and close the dialog; click Cancel to discard the changes and close the dialog.

 

 

The Fibonacci Settings dialog box can be accessed in three ways:

-Click the Object Settings button on the chart toolbar, when a Fibonacci Channel object is selected.
-Right-click on a Fibonacci object, and then click Settings.
-Double-click on the Fibonacci Retracement plotted in the chart.