Re-Fibo retracements

["Paul Lemarchand" <paul.lemarchand@xxxxxx>]

Hi Burwell,

Please find, here after, the detailed code in Easy Language to perform a n%
fibo retracement.

First we have to agree on the 2 points A and B on which we are going to
compute the retracement.
In my first ELA file I was using an envelop on a P&F chart.
In the same idea I will now use a channel breakout ( some people use
a plain % from a certain point ( pivot per example) but I prefer to know
the size of the leg on which I am going to compute the retracement.
The start is to have an indicator which gives you the starting point (A)of
the previous trend and the provisory ending point of this trend ( B).
Thus you get 2 points ( leg A/B) on which you can draw different levels of
Fibo retracements.
The channel ( as a volatility breakout indicator) is a good point to start
you will have to adjust the length of the lookback to adjust the channel to
your own time horizon ( intraday, daily, weekly, etc...).

Code :
Input : LookBack ( N), Fibo(0.68)     Fibo() could be any level of
                                                              retracement
you may choose

Var : HP(0),LP(0);                   HP/LP ( highest High /lowest Low of
                                                  channel between 2 changes
of direction
Var : DirP(0),DirN(0);             Positive/negative direction
Var : BegH(0),BegL(0);          Beginning value of High/low when new
                                                  direction changes
(breakout of channel )
Var : LastH(0),LastL(0)           Last Highest High or Lowest Low
Var :  FiboP(0),FiboN(0);       Estimated level of Pos/Neg
                                                 retracement

{ 1° perform channel High and low levels }

HP=highest(H,Lookback);
LP=lowest(Low,lookback);

{ 2°  perform change of direction }
if close>HP then DirP=1;
if close<LP then DirN=-1;
if close>HP then DirN=0;
if close<LP then DirP=0;

{ 3° register beginning High and low when change of direction and keep last
Highest H or Lowest Low for further needs ,adjust BegH and begL according to
price levels}

if dirP=1 and DirN[1]= -1 then begin
begH=high;
LastH=begH[1];
end;
if dirN= -1 and DirP[1]=1 then begin
begL=Low;
LastL=begL[1];
end;
if dirP=1 and dirP[1]=1 then begin
if high>begH then begH=High;
end;
if dirN= -1 and dirN[1]= -1 then begin
if Low<begL then begL=Low;
end;

{ 4°   perform levels FiboP and Fibo N }

if dirN= -1 then FiboP=begL+((begH-begL)*fibo);
if dirP=1 then FiboP=begL+((lastH-begL)*Fibo);
if dirN= -1 then FiboN=begH-((begH-LastL)*fibo);
if dirP=1 then FiboN=begH-((begH-begL)*Fibo);
                                {You may round () the figures of FiboP and
Fibo N}

{ 5°  Plot FiboP and FiboN  }

Plot1(FiboP,"fiboP");
Plot2(FiboN,"FiboN")

NB  If you want to trace the different figures used along in this indicator,
to better understand how it works you may plot too :
DirP,DirN ( I use histogram plot), BegH,begL,LastH,LastL

I hope these explanations will help you and I forward the same message to
the group in case of somebody else could be interested in it.

Regards.           Paul