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Hi Erika,
I really like your approach with this! I can see how it could be
really useful. I've aways been frustrated by the manual nature of the
Fib. line study. Your indicator is perfect for studying how well a
stock behaves during retracements throughout its history.
I encourage everyone who's interested in retracements to plot Erika's
"FibZag" using a 10% value and study the resulting chart over a
multi-year period. It will help you decide for yourself about how
accurate Fib. numbers are. You may also want to create a duplicate
function that uses even percentage numbers (10, 20, 40, 50, etc.) and
compare the accuracy of the two.
I'm disturbed to see that others on this list haven't given you more
credit for a wonderful contribution. Thanks and please let us know if
you come up with any more gems like this.
Chip
http://coolhistory.com/ChipsCharts
---Erika Toth Fluke <Erika@xxxxxxxxxxxxxxxxx> wrote:
>
> HI,
>
> In the last couple month I wanted to plot the Fibonacci lines on the
chart
> so that I don't need to go to excel and calculate it. Yesterday I
finally
> came up with a solution using the Zig-Zag indicator. I read a lot of
> unfavorable opinion about that indicator. It looks to me that in
the
> Fibonacci case I can use it, but I would like to know if anybody has
> opposing opinion that I'm not aware of in using the Zig-zag
indicator for
> his purpose.
>
> The indicator I created is:
> Piv#11 - Fibonacci Levels
>
> ZigPerc:= Input("Zig-Zag Percentage", .1, 99, 1);
>
> {basic peak and trough level calculation}
> P1 := ValueWhen(1, Peak(1, Zig(C, ZigPerc, %) , ZigPerc) ,
Peak(1,
> Zig(H, ZigPerc, %) , ZigPerc)) ;
>
> P2 := ValueWhen(1, Trough(1, Zig(C, ZigPerc, %) , ZigPerc) ,
> Trough(1, Zig(L, ZigPerc, %) , ZigPerc));
>
> {Fibonacci retracement levels calculation}
> P3 := P2 + (P1-P2)*0.236;
> P4 := P2 + (P1-P2)*0.382;
> P5 := P2 + (P1-P2)*0.5;
> P6 := P2 + (P1-P2)*0.618;
> P7 := P2 + (P1-P2)*0.764;
>
> {Plotting the levels}
> P2; {through}
> P3; {23.6% (76.4%) retracement}
> P4; {38.2% (61.8%) retracement}
> P5; {50.0% retracement}
> P6; {61.8% (38.2%) retracement}
> P7; {76.4% (23.6%) retracement}
> P1; {peak}
>
> Good trading,
>
> ***** Erika ***** :-)
>
>
>
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