T-VALUATION Trading Made Simple. The Fibonacci Channel Indicator Classic. Table of Contents. 1 The Fibonacci Channel Indicator Classic: Overview 2

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1 The Fibonacci hannel Indicator lassic Table of ontents 1 The Fibonacci hannel Indicator lassic: Overview 2 2 Using the Fibonacci hannel Indicator 3 3. Alerts 9 4. Using the T-Bars Paint Study Inputs Formatting Policy Disclaimer 14 1 opyright T-Valuation 2014

2 1) The Fibonacci hannel Indicator lassic Overview This indicator replaces the free version of the Fibonacci hannel Indicator. The Fibonacci hannel is a trend following and momentum indicator designed as an alternative to the traditional moving average indicators. The great advantage over the traditional moving averages is that this indicator is time frame independent. A 200 day period moving average on a daily chart, for example, is probably of little use on a monthly chart. This indicator is fully time frame independent; there is no need to make adjustments based on time interval. The indicator is made of three components: The Fibonacci Stream, The Fibonacci Stream Average, and an optional Trend marker. The indicator is in essence a dynamic Fibonacci Price Retracement Level constantly adjusting to market movements and shown as stream lines. Entry signals are clear with support and resistance levels built into the stream lines. An additional paint bar study helps identify the overall trend and to spot possible reversals. Use it periodically to build a solid mental framework to recognize potential trading opportunities. In addition to the traditional bar studies, the indicator can be used with Point & Figure charts, Kagi charts, Renko, Momentum, and Range bars. 2 opyright T-Valuation 2014

3 2) Using the Fibonacci hanel : General Guidelines 2.1 Indicator is Bullish: Fibonacci Stream and Stream Average are above Trend Marker B A A Stream Average Stream Average Trend Marker Figure 1: Apple omputer (AAPL) 60 minutes hart 3 opyright T-Valuation 2014

4 A Long Entry: Stream and Stream Average are above Trend Marker. Stream Average crosses above the Stream. Alternatively, if you are using the paint bar studies enter long when the bar color switches to green from red and the overall condition is bullish. B Exit Area or Trend Resume Reentry: Stream and Stream Average are above Trend Marker. Stream Average crosses Below the Stream. Alternatively, if you are using the paint bar studies enter long when the bar color switches to green from red and the overall condition is bullish. Exit Area or Wait for Trend to Resume: Stream and Stream Average are above Trend Marker, Stream Average still Above the Stream but price has closed below it. Alternatively, if you are using any of the paint bar studies exit when color has switched from green to red. The above guidelines are the most general only, many other conditions can be established by using the indicator frequently. Flat or ranging markets can lead to false signals, always use risk control when trading. 4 opyright T-Valuation 2014

5 2.2 Indicator is Bearish: Fibonacci Stream and Stream Average are Below Trend Marker A A B B Fibonacci Stream Stream Average Trend Marker Figure 2: hipotle (MG) 60 minutes hart 5 opyright T-Valuation 2014

6 A Warning Signal: Stream and Stream Average are above Trend Marker. Stream Average crosses below the Stream. Alternatively, if you are any of the paint bar studies a warning is in place when the bar colors switches to red from green and the overall condition is bullish. B Early Short Entry Point: Stream and Stream Average are above Trend Marker, Stream Average is below the Stream and price closes below the Trend Marker. Short Entry point: Stream and Stream Average are Below Trend Marker, prices continue to close below the Trend Marker. In this chart the conditions remain bearish. The above guidelines are the most general only; many other conditions can be established by using the indicator frequently. Flat or ranging markets can lead to false signals, always use risk control when trading. 6 opyright T-Valuation 2014

7 2.3 Short/Long Trade Using Only The Fibonacci Stream Line with T-Bars Simple is always better, in the example below the Trend Marker and Stream Average Lines are set to false (see section 7) leaving only the Stream Line and T-Bars as guidelines. F F A B D E E Fibonacci Stream Figure 3: YM E-Mini Futures ontract 60 minutes hart 7 opyright T-Valuation 2014

8 A Failed Trend Reversal /Early Short Entry : Prices crossed below the Stream Line, bars are green,overall direction of the Stream Line is down. B Pivot Reference Point : Prices make a new low and bounce back hitting resistance at the Stream Line, Paint Bars stay red. Point B is now a reference point to enter a short position. Short Set Up/ Late Entry : Prices broke through reference point B,enter or add to short position. D Exit Short : Prices crossed above Stream Line, Paint Bars went from red to green at Point D. E Long Entry : Prices remain above the Stream Line, Paint Bars are green and point D is broken. Enter Long position with suggested stop loss at the Stream Line. F Exit Long : Prices crossed below Stream Line and Paint Bars are now red. Exit Long Position The above guidelines are the most general only, many other conditions can be established by using the indicator frequently. Flat or ranging markets can lead to false signals, always use risk control when trading. 8 opyright T-Valuation 2014

9 3) Alerts The following alerts are included with the Fibonacci hannel Indicator.They are set to off by default when you install the the indicator. Fibonacci hannel Alerts Stream Avg rossed Above Trend Marker Stream Avg rossed Below Trend Marker Stream Avg rossed Above Fibonacci Stream Stream Avg rossed Above Fibonacci Stream Fibonacci Stream rossed Above Trend Marker Fibonacci Stream rossed Below Trend Marker To enable alerts,select the indicator and enter the format menu. heck the Enable Alert selector in the Alerts tab. 9 opyright T-Valuation 2014

10 4) Using the T-Bars Paint Study An additional Paint Bar Study is included with the indicator: T-bars can be used with candle and ochl bars. Bars are painted using the indicator parameters to show possible market direction or trend reversal. The most basic interpretation when used with andlestick with trend bars is: O O O O Uptrend Uptrend orrection Downtrend Downtrend orrection Using the Fibonacci hannel Indicator along with paint bars for prolonged periods of time can help you develop an intuitive approach to trading and gain confidence in your trading. 10 opyright T-Valuation 2014

11 5) Inputs Formatting Most parameters used by the indicators have been optimized for better performance. You can vary the following parameters in the format /Inputs menu for the indicator. Trend Marker and Stream Average Lines can be switched off by setting TrendMarkerOn and StreamAvgOn options to False in indicators format input panel. Line colors can be changed as you would for any other line based study. Figure 4: Trend Marker and Stream Average Lines Format.Default is True,set to False if not used. 11 opyright T-Valuation 2014

12 The up and down color of the Paint Study T-Bars can be changed from the study Format/Input menu. Figure 5: Setting the bars Up and Down color. 12 opyright T-Valuation 2014

13 6) Policy We have established the following policy for this indicator: 4.1) Platform Exclusive : This indicator is available only through the Trade Station Strategy Network. 4.2) Non Disclosure : No publications will ever be made available via any public media showing or explaining the calculation required to generate the indicator. In a highly competitive environment we want to give our users an edge over other traders by establishing this policy. Subscribers then become members of a limited pool of traders using the technique. **THANKS FOR THE GREAT REVIEWS A FOR HELPING MAKE THIS A GREAT TRADING TOOL** 13 opyright T-Valuation 2014

14 7) Disclaimer We are not recommending the buying or selling of any of the securities shown in the illustrations. Trading involves risks that you should be aware of before using any strategy, always use risk control when trading. We are not liable for any loses incurred by subscribers while using any of our indicators and or strategies. You are fully responsible for the trades made based on signals generated by this indicator. Support ontact : help@thermovaluation.com All charts were created using TradeStation opyright T-Valuation 2014