Traders have used Fibonacci analysis for many years to predict key reversals in all types of markets, including futures, stocks,indexes and ETFs. Scores of articles have been written on the propensity of charts to react to these levels.
Traders have used Fibonacci analysis for many years to predict key reversals in all types of markets, including futures, stocks, indexes and ETFs. Scores of articles have been written on the propensity of charts to react to these levels.
Fibonacci Trader provides an easy to use package that automates advanced Fibonacci analysis in OmniTrader. There are 2 different ways to use it – as a visual reference using the HRI Indicator or as a signal generator, using the new strategies. Both approaches are extremely powerful.
Our new Harmonic Retracement Indicator displays all the key Fibonacci Retracement and Extension levels on the right side of your chart.
Just turn on HRI and check your chart against the solid thick lines to see if the stock, future, or ETF you are trading has reached one of these key levels. You’ll be amazed at how often these lines produce a reaction in the chart.
The chart of Goldman Sachs (GS) shows the stock repeatedly reacting to the Fibonacci levels identified by the Harmonic Retracement Indicator as it moves to the upside. Notice the pattern of a new high formed at a Fibonacci level, followed by a prompt retracement back to a prior Fibonacci level. The Harmonic Retracement Indicator (RMI) helps you identify these measured moves as they occur.
Harmonic Patterns use Fibonacci Ratios between successive pivots to identify great trading opportunities.
Our NEW Harmonic Pattern System identifies six key Harmonic Patterns including the “Bat”, “Butterfly”, “Crab”, “Gartley”, “AB=CD” and “5-0”. When the appropriate ratios are found, the System fires signals which are used in the new Fibonacci Trader Harmonic Patterns Strategy.
The Harmonic Pattern System displays the name of the pattern and the Retracement Lines, making it easier to see the relationship for any signal. A few recent trades from these Strategies are shown on this page, along with their classic Harmonic Pattern definition. It is uncanny how often a chart will explosively reverse to the upside when it reaches the Signal point.
"Each Harmonic Pattern is based on a sequence of Fibonacci Ratios. It is uncanny how often a chart will explosively reverse when a Signal point is reached!"
The famous trader Larry Williams once said, “1.618 – That’s how markets propagate!” And indeed, they do.
Both the .618 (62%) Fibonacci Retracement value and the 1.618 (162%) Fibonacci Extension value can be seen at reversal points in chart after chart.
We used this relationship to build the new Fibonacci Trader Extension Strategy. Signals like the one shown here are typical. This one Strategy alone is worth the price of the upgrade.
To the left is an equity curve generated by running the Fibonacci Trader Extension Strategy on the stocks in the S&P 500 over the past 10 years.
The strategy is a consistent performer, generating signals with an accuracy approaching 70%. This new Fibonacci Trader Extension Strategy is included in the plug-in.