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T-VALUATION Trading Made Simple
1 Copyright T-Valuation 2013
The Fibonacci Channel Pro Indicator
Table of Contents
1. What’s New In this Release 2
2. The Fibonacci Channel Indicator Overview 3
3. Using the Fibonacci Channel Indicator without Target Lines 4
4. Using the Fibonacci Channel Indicator with Target Lines 8
5. Alerts 10
6. Using the T-Bars Paint Study 12
6. Inputs Formatting 13
7. Policy 16
T-VALUATION Trading Made Simple
2 Copyright T-Valuation 2013
1) What is new in Version 4
Thank you for making this indicator one of the most popular in the Strategy Network. We are excited
about the new additions to the indicator to enhance its performance,
1 .1 Addition of Automatic Trend and Target Lines
The addition of Automatic Trend and Target Lines makes the Fibonacci Channel Indicator a very robust
trading approach to any market. The Fibonacci Channel Indicator gives excellent signals for entering into
a trend, the target lines provides a guide for exiting a trade. It also serves to indicate market direction
and possible stop positions. See section 4 for usage reference.
1.2 Trend Marker can now be used with Momentum and Range Bars
The Trend Marker feature on the Fibonacci Channel Indicator can now be used with Momentum and
Range bars and.
1.3 Trend Marker Parameters Adjustment for Long Term Time Frame Charts
The Trend Marker Parameters were adjusted on Weekly and Monthly charts to minimize lag in the event
of a market crash. By using Target lines this problem is completely eliminated.
1.4 Bar Paint Studies Have Been Merged Into a Single Study.
A single price patter recognition study is now included with the indicator.
1.5 Privacy Policy
Please refer to the policy statement at the end of this document.
T-VALUATION Trading Made Simple
3 Copyright T-Valuation 2013
2) The Fibonacci Channel Indicator Overview
The Fibonacci Channel is a trend following and momentum indicator designed as an alternative to
the traditional moving average indicators. The great advantage over the traditional moving
average is that the stream indicator is time frame independent. A 200 day period moving average
on a daily chart, for example, is probably of little use on a monthly chart. This indicator is fully
time frame independent; there is no need to make adjustments based on interval. The indicator is
made of three components: The Fibonacci Stream, The Fibonacci Stream Average, and an optional
Trend marker. The indicator is in essence a dynamic Fibonacci Price Retracement Level constantly
adjusting to market movements and shown as a stream. Entry signals are clear with support and
resistance levels built into the stream line.
T-VALUATION Trading Made Simple
4 Copyright T-Valuation 2013
3) Using the Fibonacci Chanel without Target Lines: General Guidelines
3.1 Indicator is Bullish: Fibonacci Stream and Stream Average are above Trend Marker
A
C
B
Fibonacci Stream
Stream Average
Trend Marker
Apple Computer Inc. (AAPL) Daily Chart
T-VALUATION Trading Made Simple
5 Copyright T-Valuation 2013
Long Entry: Stream and Stream Average are above Trend Marker. Stream Average crosses above the
Stream. Alternatively, if you are using the paint bar studies enter long when the bar col or switches to
green from red and the overall condition is bullish.
Exit Area or Trend Resume Reentry: Stream and Stream Average are above Trend Marker. Stream
Average crosses Below the Stream. Alternatively, if you are using the paint bar studies enter long when
the bar color switches to green from red and the overall condition is bullish.
Exit Area or Wait for Trend to Resume: Stream and Stream Average are above Trend Marker, Stream
Average still Above the Stream but price has closed below it. Alternatively, if you are using any of the
paint bar studies exit when color has switched from green to red .
The above guidelines are the most general only, many other conditions can be established by using the
indicator frequently. Flat or ranging markets can lead to false signals, always use risk control when
trading.
B
C
A
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6 Copyright T-Valuation 2013
3.2 Indicator is Bearish: Fibonacci Str eam and Stream Average are Below Trend
Marker
Fibonacci Stream
Stream Average
Trend Marker
A
C
B
Chipotle Inc. (CMG) 60 minutes Chart
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Warning Signal: Stream and Stream Average are above Trend Marker. Stream Average crosses below
the Stream. Alternatively, if you are any of the paint bar studies a warning is in place when the bar
colors switches to red from green and the overall condition is bullish.
Early Short Entry Point: Stream and Stream Average are above Trend Marker, Stream Average is
below the Stream and price closes below the Trend Marker.
Short Entry point: Stream and Stream Average are Below Trend Marker, prices continue to close
below the Trend Marker. In this chart the conditions remain bearish.
The above guidelines are the most general only; many other conditions can be established by using the
indicator frequently. Flat or ranging markets can lead to false signals, always use risk control when
trading.
B
C
A
T-VALUATION Trading Made Simple
8 Copyright T-Valuation 2013
4) Using the Fibonacci Chanel with Target Lines: General Guidelines
Apple Computer Daily Chart
The usage of the target lines is illustrated in an Apple Computer daily bar chart; T-Bars were also used in
this example. The calculation is made automatically based on the number of bars you have displayed on
your chart. The center line is the trend line and indicates direction. The upper targets are U1 and U2 and
the lower targets are designated L1 and L2. The trend line and targets U1 and L1 have been already
optimized; the outer targets U2 and L2 are adjustable via the input menu when you format the
indicator. I recommend using a Max Target Ratio between 0.4 and 0.55 for the outer target lines, 0.5
was used in the illustration. The trades in the system are obvious from the picture:
T-VALUATION Trading Made Simple
9 Copyright T-Valuation 2013
Long Entry: The trend is up and prices are below the trend line . The Stream
Average is above the Stream, the Stream is above the Trend Marker. Enter long with a
stop at the Stream.
Long Early Exit : Prices are now above the U1 target line and it is good time for a safe and profitable
exit.
Long Exit : Prices have almost reached the upper target level U2 , the market might
be overbought. This a more precise but ri sky ex i t.A pre short signal could also be given
here.
Short Entry : Prices are above the U1 Target level , the Stream Average is now below
the Stream l ine .Enter short with a stop sl ightly above the Stream.
Short Cover: Prices have declined to below the L1 target level. Good point to cover the short at a
substantial profit.
A Note of Caution :the target indicator wil l use all the bars in the cha rt for it’s
calculation. If you are using an excessive number of bars it may take a while for the
indicator to load.
In very short time frames the direction of the trend line can change quickly and prices will hang
around an outer target until the trend is reversed. Always use a higher time frame for confirmation for
very short time trades.
The above guidelines are the most general only; many other conditions can be
established by using the indicator frequently. Flat or ranging markets can lead to
false signals, always use risk control when trading.
A
B
C
D
E
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10 Copyright T-Valuation 2013
5) Alerts
The following alerts are included with the Fibonacci Channel and Target Indicators .They are set to
off by default when you install the the indicator.
Fibonacci Channel Alerts
Stream Avg Crossed Above Trend Marker
Stream Avg Crossed Below Trend Marker
Stream Avg Crossed Above Fibonacci Stream
Stream Avg Crossed Above Fibonacci Stream
Fibonacci Stream Crossed Above Trend Marker
Fibonacci Stream Crossed Below Trend Marker
Target Alerts
Close Crossed Above L2 Target Close Crossed Below U2 Target
Close Crossed Above L1 Target Close Crossed Below U1 Target
Close Crossed Above L1 Target Close Crossed Below Trend Line
Close Crossed Above Trend Line Close Crossed Below L1 Target
Close Crossed Above U1 Target Close Crossed Below L2 Target
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To enable alerts ,select the indicator and enter the format menu . Check the “Enable Alert” selector in
the Alerts tab.
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6) Using the T-Bars Paint Study
An additional Paint Bar Study is included with the indicator: T- Bars are created using the indicator
parameters to show possible market direction or trend reversal. The basic interpretation when using this
study is:
Uptrend
Correction
Corre
Downtrend Downtrend
Correction
Uptrend
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7) Inputs Formatting
Most parameters used by the indicators have been optimized for better performance. You can vary the
following parameters in the format inputs menu for the indicator
Fibonacci Channel Indicator Input
You can turn the Trend Marker and Stream Average Lines off by setting TrendMarketOn
and StreamAvgOn to false in the input panel .Line colors can also be changed here .
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Fibonacci Channel Target Indicator Inputs
In addition to changing the target line colors you can vary the position of the outer target lines U2 and
L2 as you wish by adjusting the parameter MaxTargetRatio as you desire.The default value is 0.5 , we
recommend values between 0.4 and 0.55.
T-VALUATION Trading Made Simple
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T-Bars Paint Study Inputs
Here you can modify the down and up bar colors by changing the parameters UpBarColor and
DwnBarColor.
T-VALUATION Trading Made Simple
16 Copyright T-Valuation 2013
8) Policy
We have established the following policy for our products:
4.1) Platform Exclusive : An indicator running in one platform will only run in that platform.That is ,and
indicator runniing in TradeStation will only run in Trade Station.
4.2) Non Disclosure : No publications will ever be made available via any public media regarding the
calculation procedure to generate the indicator.
In a highly competitive environment we want to give our users an edge over other traders by
establishing this policy.Subscribers then become members of a limited pool of traders using a given
technique.
**THANKS AGAIN FOR HELPING MAKE THIS A GREAT TRADING TOOL. HAPPY TRADING**
All charts were created using TradeStation 9.1
We are not recommending the buying or sel l ing of any of the securities shown in the il lustrations. Trading involve
risks that you should be aware of before using any strategy.We are not l iable for any loses incurred by subscribers
while using any of our indicatos and or strategies. You are fully reponsible for the trades made based on signals
generated by this indicator.
Support Contact : [email protected]