Contents:

• Indicator purpose
• Settings: General
• Settings: Inputs
• Settings: Alerts
• Example
• Patterns:
  • Bullish Gartley
  • Bearish Gartley
  • Bullish Butterfly
  • Bearish Butterfly
  • Bullish StackZone
  • Bearish StackZone
  • Bullish AB=CD
  • Bearish AB=CD
  • Bullish Bat
  • Bearish Bat
  • Bullish Crab
  • Bearish Crab
  • No Fibonacci Signal
• Disclaimer

Indicator purpose

Ham Fibonacci looks for defined Fibonacci patterns. It functions both as a RadarScreen scanner, to identify the patterns, and as a charting indicator, displaying the appropriate retrace and extension Fibonacci lines, depending on the pattern. Generally, you would set up a RadarScreen with a list of tickers of interest. Then, when the RadarScreen identifies a particular Fibonacci pattern, click on it (with window linking to the chart), and examine the Fibonacci pattern on the chart to determine whether it is a valid trade indication. The Fibonacci indicator can be combined with other indicators to get a higher percentage trade probability - for example, using Ham Candlestick or Stochastics or ADX.

Assuming that enough Pivot points are found, Ham Fibonacci will always draw the Pivot trendlines and some Fibonacci retrace/extension lines. If no Fibonacci pattern is identified, then Ham Fibonacci will draw the Pivot trendlines with some default Fibonacci retrace values so that you can estimate possible future patterns. If not enough Pivot points are found, Ham Fibonacci does not draw any Fibonacci or Pivot trendline information.

Settings:General

• Maximum number of bars study will reference - default is Auto-detect.
• Update value intra-bar - default is Checked - you may Uncheck to improve performance, but the indicator will not be recalculated until the end of the current bar.
• Load additional data for accumulative calculations - default is unchecked.

Settings:Inputs

• Strength determines the number of bars needed to indicate a pivot point. Default value is 5. For example, with a value of 5, a pivot point is only identified if 5 bars on each side of the current bar are ALL lower (a Pivot High) or ALL higher (a Pivot Low). Note that for Fibonacci patterns, the Pivot High and Pivot Low points MUST alternate, so you will see some charts where a Pivot is skipped when there are two or more Pivot Low (or Pivot High) points in a row with no intervening opposite Pivot.
• Length determines how many bars back Ham Fibonacci will go in searching for Pivot Points. Default value is 100. If insufficient pivot points are found within the specified number of bars, no pattern is drawn.
• IsRadarScreen tells HamFibonacci that it should display RadarScreen information instead of charting information. NOTE - YOU MUST SET THIS VALUE TO TRUE FOR RadarScreen OR YOU WILL NOT SEE ANY SIGNALS! This input is necessary because (at this point) TradeStation does not make the charting type (ShowMe / Chart / RadarScreen / etc.) accessible in EasyLanguage.

Settings:Alerts

This Indicator does not currently support Alerts, but that may be a feature of a future release.

Example:

There are several commonly used Fibonacci patterns. These were pioneered by Gartley (in 1935) in "Profits in the Stock Market," although they have been refined and defined using Fibonacci ratios more recently. Descriptions of some patterns can be found at HarmonicTrader.com and other sites, and in various books including "Fibonacci For the Active Trader" by Derrik Hobbs, available from www.tradingmarkets.com.

Ham Fibonacci recognizes the following patterns shown in these examples. StackZone is my own pattern specification, but it is similar to Hobbs' Triple Crown.

This RadarScreen shows how Ham Fibonacci identifies patterns. These particular tickers were chosen on the day that I did the screen shots. In general, Fibonacci signals are much more rare. If you display 100 tickers, you may have two or three Fibonacci signals at one time, sometimes more, sometimes none. Notice how the RadarScreen entries are in different timeframes. Be sure to check different timeframes - and other indicators like Candlesticks and/or Stochastics and/or ADX - to get a higher probability on the trade. Also, make sure that you verify the Fibonacci chart pattern, to see that there are no reasons to invalidate it.

Chart Notes: All patterns have a series of alternating Pivot High and Pivot Low points. These are labelled from right to left (that is, going backwards in time) as A, B, C, D, E, etc. For description of the patterns, these letters are used to identify the Pivot points. Point "A" is the current or last price. Lines are specified left-to-right - so the trendline from point E to point D is 'ED'.

Bullish Gartley

• Point C is between 382 and 618 retrace of line ED
• Point B is between 382 and 786 retrace of line DC
• Point A (current price) is between 618 and 786 retrace of line ED
• Objective1 is 618 retrace of BA
• Objective2 is 1272 extension of DA

Bearish Gartley

• Point C is between 382 and 618 retrace of line ED
• Point B is between 382 and 786 retrace of line DC
• Point A (current price) is between 618 and 786 retrace of line ED
• Objective1 is 618 retrace of BA
• Objective2 is 1272 extension of DA

Bullish Butterfly

• Point C is between 382 and 786 retrace of line ED
• Point B is between 382 and 786 retrace of line DC
• Point A (current price) is between 1272 and 1618 extension of line ED
• Objective1 is 618 to 786 retrace of BA
• Objective2 is 1272 extension of DA

Bearish Butterfly

• Point C is between 382 and 786 retrace of line ED
• Point B is between 382 and 786 retrace of line DC
• Point A (current price) is between 1272 and 1618 extension of line ED
• Objective1 is 618 to 786 retrace of BA
• Objective2 is 1272 extension of DA

Bullish StackZone

• Point A (current price) is between 500 and 618 retrace of line EB
• Point C is between 618 and 786 retrace of line EB
• Objective1 is 618 retrace of BA
• Objective2 is 1272 extension of BA

Note that this is similar to Derrik Hobbs' Triple Crown. The difference is that the Triple Crown expects the 786 retrace of CB to fall within the same 500 to 618 retrace zone of EB. If you work out the math on this, you'll find that this is equivalent to expecting point C to be in the 636 to 786 retrace zone of EB. (.636 = 500 / 786, .786 = 618 / 786). So, the Triple Crown is slightly different than the StackZone in that Rule 2 for Point C is between 636 and 786 retrace of EB for Triple Crown, and between 618 (a primary Fibonacci number) and 786 retrace of EB for StackZone.

Bearish StackZone

• Point A (current price) is between 500 and 618 retrace of line EB
• Point C is between 618 and 786 retrace of line EB
• Objective1 is 618 retrace of BA
• Objective2 is 1272 extension of BA

Note that this is similar to Derrik Hobbs' Triple Crown. See notes under Bullish StackZone

Bullish AB=CD

• Point B is between 618 and 786 retrace of line DC
• Point A (current price) is between 1272 and 1618 extension of line CB
• Objective is 618 retrace of BA

Bearish AB=CD

• Point B is between 618 and 786 retrace of line DC
• Point A (current price) is between 1272 and 1618 extension of line CB
• Objective is 618 retrace of BA

Bullish Bat

• Point C is between 382 and 500 retrace of line ED
• Point B is between 382 and 886 retrace of line DC
• Point A (current price) is near 886 retrace of line ED
• Objective1 is 618 to 786 retrace of BA
• Objective2 is 1272 extension of DA

Bearish Bat

• Point C is between 382 and 500 retrace of line ED
• Point B is between 382 and 886 retrace of line DC
• Point A (current price) is near 886 retrace of line ED
• Objective1 is 618 to 786 retrace of BA
• Objective2 is 1272 extension of DA

Bullish Crab

• Point C is between 382 and 618 retrace of line ED
• Point B is between 382 and 886 retrace of line DC
• Point A (current price) is near 1.618 extension of line ED
• Objective1 is 618 to 786 retrace of BA
• Objective2 is 1272 extension of DA

Bearish Crab

• Point C is between 382 and 618 retrace of line ED
• Point B is between 382 and 886 retrace of line DC
• Point A (current price) is near 1.618 extension of line ED
• Objective1 is 618 to 786 retrace of BA
• Objective2 is 1272 extension of DA

No Signal (empty RadarScreen cell)

If no Fibonacci pattern is identified and enough Pivot points have been found, Ham Fibonacci draws the Pivot trendlines and some Fibonacci retrace levels on the chart, so that you can identify other Fibonacci patterns and zones, or possible future patterns. The following Fibonacci levels are shown:

• 382, 500, and 618 retraces of line ED are Magenta, and start at point E, extending to current bar
• 382, 500, and 618 retraces of line DC are White, and start at point D, extending to current bar
• 382, 500, and 618 retraces of line CB are Cyan, and start at point C, extending to current bar

Disclaimer

HamRadar01 is not guaranteed for any particular purpose. Trading involves a high level of risk - and neither Prototech, Inc., nor Nelson Crowle (HamFon) will be liable for any losses that you incur. HamRadar01 is licensed for individual usage - you may use it on any number of machines, but only with the TradeStation Customer Number that you provide when you order. You may not reverse engineer HamRadar01, or share it with other users.

If you have any questions, please email me.