The
Dynamic FIB Trading Framework (FTF):
The
intra-day FIB Trading Framework (FTF) software is designed
to dynamically track in real-time the Fibonacci nodes.
The software divides the daily intra-day range into three
distinct sections called: 1) Dynamic FIB Box (FB) or
the Pivot, 2) the Backfield section and 3) the Forward
section. The FIB Trading Framework control Boundary is
represented by the FIB High Line (FHL) and FIB Low Line
(FLL) representing the intraday high and lows respectively.
The FTF dynamic FIB Lines automatically adjust as the
range of the intra-day price
action expands during breakouts or breakdowns. Please
keep in mind the FIB Trading Framework nodes are distinctively
different from the FIB retracement and retrenchment of
individual price action moves which are calculated using
manual charting tools. The FIB Trading Framework nodes
are based on the dynamic intra-day price action range
as it unfolds in real time. Now let’s go to a charting
“eye specialist”
and observe a side-by-side comparison between a typical
chart and a chart with FIB Trading Framework applied
to it. Please see Figure-1 and Figure-2 below showcasing
a side-by-side comparison that vividly highlights the
trading clarity perspective of the FIB Trading Framework.
THIS OR THIS
(97% proverbial fog & confusion) (20/20 FIB Trading Framework clarity!)
Figure-1 Typical Chart Figure-2 FIB Trading Framework Chart
The
Dynamic FIB Box is the heart of the FIB Trading framework.
It separates the Forward section from the Backfield section.
The FIB Box (FB) boundary is defined by the Major FIB node
lines comprising of the 0.382 and 0.618 nodes. The central
importance of the FB is obvious to a professional day trader
when you consider it acts as the target area representing
the Major FIB nodes (0.382, 0.618 or 0.500). The Dynamic
FIB Box has special significance especially after major
trend reversals when it precisely reveals the potential
support and resistance target areas. The top line of the
Dynamic FIB Box is called “FIB Top Line” or simply FTL.
Similarly the bottom line of the Dynamic FIB Box is referred
to as the “FIB Bottom Line” or simply FBL. For Retrenchment
moves the FTL represents the Fibonacci 0.382 node and FBL
represents the 0.618 node. Conversely for Retracement moves
the FBL line represents the Fibonacci 0.382 node and FTL
line represents the 0.618 node. The Fib node 0.500 is always
boxed exactly half way between the FTL and FBL lines. The
distance between the FTL and FBL is called the height of
the Dynamic FIB Box which is always exactly 23.6% of the
intraday range. Both the FTL and FBL lines can serve as
effective support and resistance lines or as risk management
levels through out the trading day. The Forward and the
Backfield sections of the FTF Trading Framework are further
dissected by two minor FIB nodes of 0.786 (or 0.764 etc.)
and 0.214 (or 0.236 etc.) called FIB Top Node (FTN) and
the FIB Bottom Node (FBN) respectively. Sometimes slightly
differing values are used for the FTN and FBN minor nodes.
Nevertheless the FIB trading Framework allows a user to
change the minor FIB node input values based on his preferences.
Therefore the showcased educational chart examples use
both values.
FIB Historical Perspective: Fibonacci was a 13th century mathematician who discovered a sequence
of integers in which each integer after the second was
the sum of the two preceding integers. These numbers
are called Fibonacci numbers. The Fibonacci series includes
1, 1, 2, 3, 5, 8, 13, 21… and so on. One can derive the
Fibonacci nodes by simply dividing and taking ratios
of the elements of the Fibonacci number series. Some
of the more commonly used Fibonacci nodes include 1.618,
0.618, 0.382, 0.500, and 0.786 and so on. This constant
ratio of 1.618 and its derivatives are commonly found
in nature, geometry, architecture, music, astronomy,
DNA and believe it or not in everyday trading. The complex
trading psychology of fear and greed tends to correlate
extremely well with Fibonacci nodes during Retracements
and Retrenchments.
The
Dynamic FIB Trading Framework has three operational modes
to suite various styles of professional trading. These
three modes, namely: 1) Charting mode, 2) Zone Play mode
and 3) the FB Cross signal mode are described below. FIB Charting Mode:
In
the default charting mode the FIB trading framework software
dynamically tracks all the unfolding intra-day price
action levels based on your default chart bar color settings.
See Figure-3 that shows a sample Dynamic FIB Trading
Framework applied to a typical chart.
Figure-3 FIB Trading Framework Chart mode
FIB Zone Play Mode:
In
the Zone Play (Paint Bar) mode the entire FIB trading
framework structure is highlighted in three distinct
colors depicting the overall nature of the ensuing price
action. For example, when the price action takes place
within the Dynamic FIB Box the corresponding bars are
painted Yellow. However, when the price action breaks
out above the Dynamic FIB Box the bars are painted Green.
Conversely, when the price action falls below the Dynamic
FIB Box those bars are painted Red. The Zone Play mode
provides an instant FIB Heat Map view of the intra-day
price action. In this manner, the FIB trading framework
Zone Play Heat Map view alert’s the professional trader
to any unfolding price action inflection points around
major and minor FIB nodes and their corresponding trading
setups. Please see Figure-4, for a sample Dynamic FIB
Trading Framework with the Zone Play mode option turned
on.
Figure-4 FIB Trading Framework Chart in Zone Play mode
FB Cross Signal Mode:
In
the Dynamic FIB Box Cross Signal mode the price action
reversal bar that crosses and closes above the Dynamic
FIB Box is painted Green to highlight potential reversal
long setups. Conversely, when the price action reversal
bar crosses and closes below the Dynamic FIB Box that
bar is painted Red to highlight potential short plays.
Please see Figure-5 below showing FB Cross mode signals.
Figure-5 FIB Trading Framework Chart in FIB Box Cross mode
FIB Reversals:
Once
you have identified volatile high relative strength stocks
with large intra-day ranges then you can track these
stocks for reversals applying the FIB Trading Framework.
Strongly up trending stocks tend to reverse or correct
to their FTN (0.786/0.764), FTL (0.382) or FCL (0.500)
nodes prior to resuming their uptrend into market close.
Similarly the strongly down trending stocks have a tendency
to correct or reverse to their FBN (0.246/0.214), FBL
(0.382) or FCL (0.500) nodes prior to resuming their
down trends into the market close. See Figure-6 and Figure-7
showing a strongly trending stock reversing and resuming
their original trends into the market close. Many stocks
also tend to establish large opening bell intra-day ranges
and then reverse back and forth through out the trading
session providing multiple trading opportunities. See
Figure-8 that shows price action with multiple reversals
and corresponding trading opportunities.
Figure-6 FIB Trading Framework FCL down reversal Figure-7 FIB Trading Framework FCL up reversal
Figure-8 FIB Trading Framework multi-reversal Chart
FIB Trading Framework applied to FOREX
Charts:
FIB
Trading Frameworks can also be successfully applied to
the FOREX markets. FIB Trading Framework can help differentiate
slow trading periods from active periods. The active
periods show the range of the FIB Trading Framework nodes
expand as volatility increases and the price action is
no longer confined to one or two FIB sections. See
Figure-9 that show the FIB Trading Framework applied
to a FOREX chart.
Figure-9 FIB Trading Framework applied to a FOREX Chart
FIB Trading Framework applied to Futures & Index
Charts:
FIB
Trading Frameworks can also be successfully applied to
the Futures & Index markets. See Figure-10 that show the FIB Trading Framework
applied to a Mini Sized Dow Futures chart.
Figure-10 FIB Trading Framework applied to a Futures Chart
FIB Trading Framework Alerts:
A
user can easily set audio visual alerts for all seven
Dynamic FIB Trading Framework structure lines. These
alerts can be set as single line alerts, multiple line
alerts or all seven line alerts. However,
the selected audio alert sound will be the same in all
cases. The Dynamic FIB Trading Framework structure
alerts are defined as follows:
FHL Alert:
Alerts when the Dynamic FIB High Line price action makes a new high
FLL Alert: Alerts
when the Dynamic FIB Low Line price action makes a new
low
FTL Alert: Alerts
when the close breaks above the FIB Box Top Line
FBL Alert: Alerts
when the close breaks below the FIB Box Bottom Line
FTN Alert: Alerts
when the close crosses above the FIB Top Node Line
FBN Alert: Alerts
when the close crosses below the FIB Bottom Node Line
FCL Alert: Alerts
when the close crosses above OR below the FCL (0.50)
node
FTF
Trading Framework Benefits Summary:
+ Instantly
shows whether it is a Gap-Up or a Gap-Down opening
+ Dynamically
adjusts to show the location of Major FIB levels + Dynamically
adjust to shows the location of Minor FIB levels
+ Dynamically
adjust to shows the location of .500 FIB level
+ Allows
trader to turn On/Off the Minor FIB levels
+ Allows
trader to turn On/Off the 0.500 FIB levels
+ Allows
trader to substitute different values for the Minor FIB
nodes
+ Provides
instant relative strength comparison between market-Index
or other equities
+ Pinpoints
precise timing & price level of new intra-day breakouts
or breakdowns
+ Identifies
potential major & minor framework Support, Resistance & Reversal
levels
+ Identifies
stop loss levels around the FHL, FLL, FTL, FBL, FTN & FBN
nodes
+ Dynamically
calculates and paints Retrenchment level FIB nodes
+ Dynamically
calculates and paints Retracement level FIB nodes
+ Identifies
FIB structure levels where trailing stops can be applied
+ Allows
placing Alerts at various FTF structure price action levels
In conclusion,
based on our experience we are confident that once you
start using the FTF trading framework methodology it
will be very difficult for you to go back to the plain
old charts. Therefore, purchase the revolutionary FTF
trading framework today and take your dynamic intra-day
range based FIB analyses and trading along with risk
management to the next level.
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NOTE:- Indicators will be emailed to you as attachments after purchase. Although
in most cases we will try to immediately fulfill your
order, nevertheless to accommodate peak order times & workloads; please allow 3 to 5 business days for
delivery after purchase.
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