Market Trader Forum

SwingManT · Verfasst am: 27.03.2007, 15:44

Posting von Frank über BarRanges / Yahoo Group
Hi Kenneth,

Hope you're well.

For example the current range on Er2, you begin with your ATR, Now ER2 works normally around an R13-15 bar as it's primary range, you can begin with setting up a Range chart of R13 R15 Day and apply the 2nd parameter encapsulation. Once you have applied the 2nd encapsulation you'll see a 'star', this star is based on the two movement of 13 points to make up the 15 point range, so whilst it's above or below the 'spiral' point you have an idea that price is trying to move away from the previous spiral point two bars.

When markets are volatility like in the recent sell-off, that movement of two R13 bars can happen in 1 day, but normally it happens over a number of days. When markets rise volatility drops and any R13 range will take a lot longer to complete. (over a number of days)

So if the ATR is around 13 points, you divide that range into 3rd's so you end up with a range around R4.3 and half of 13 becomes 6.5, once again you use the 2nd encapsulation and apply the same theory. Price has to move two R4.3 bars before the next 6.5 range forms as it moves the ATR of the day. And the same 'star' points become Risk levels.

It all depends on the type of trader you are, longer term or position traders might solely focus on the R13 range, short term scalpers might even find the R4.3 too large and want to go even shorter, then half then 4.3, and look at 2.1 3.3 and apply this as it moves within the spiral points.

You can visually look at the chart and look at ranges around those levels and see if another range that is actually a better range to trade because around spiral points you'll see a lot of exact turning points, it might only be a few points either way and you'll soon see that a certain range becomes more robust in using this theory. I actually find 2.4 on Er2 and very good starting point. All you need is then to build trading set-ups or filters to actually trade that movement.

The Spiral points also become ideal 'risk management' because they can be excellent timing tools to get you in and out of the market, ideal entry points and important because of least capital risk, they are closest to your initial stop loss point. If the market has to travel two bars until then next 'spiral point' then it takes the guess work out of when you want to exit any trade, and if you want to re-enter the market you can wait until the next spiral point is formed to move back in.

There is a plethora of information in the forum and in the PDF files, especially in the SPI section.

I hope this helps

_________________

SwingManT · Verfasst am: 27.03.2007, 15:47

- Vielleicht kann jemand der der englischen Sprache mächtig ist, einen E-Mail an Frank schicken, was man mit dem Spiral Points anfangen soll.
Gibt es ein Add-on für das FiboTrader Programm, oder eine zusätzliche Dokumentation?