Fibonacci patterns are recognized when a configuration of tops and bottoms on the chart conforms to a certain rule based on Fibonacci ratios. If a Fibonacci pattern is found, the price will be likely to find support or resistance at one of the levels calculated by the system. By default, these levels are located above or below the last price in the pattern and constitute a Fibonacci ratio-based sequence with that price.
You can find descriptions of all available Fibonacci patterns here:
Here is how you can search for Fibonacci patterns in Charts:
1. Click the Patterns button above the chart and choose Select patterns... The Select Patterns dialog window will appear.
2. On the Fibonacci tab, select the patterns you would like to search for and click Add selected. You can click Add all so the system will search for every known Fibonacci pattern. All the selected patterns will be displayed as a list to the right.
3. To remove a pattern from the list, click Remove next to it. To remove all patterns from the list, click the Remove all button below.
4. To customize the parameters of a pattern, click the Settings button next to it. The Settings dialog will appear.
5. On the Parameters tab of the Settings window, you can customize the following:
Pattern length. Specify the minimum and the maximum pattern length in bars.
Direction. Specify the direction of the anticipated trend after pattern completion: bullish, bearish, or either.
6. On the Quality tab, you can specify the quality parameters of the pattern you are looking for. To set a parameter's strength, drag the corresponding slider:
Time symmetry. Defines how closely the turning points of the pattern should follow the Fibonacci proportions in the horizontal direction. The higher the strength of this parameter, the less tolerance is applied.
Price symmetry. Defines how closely the turning points of the pattern should follow the Fibonacci proportions in the vertical direction. The higher the strength of this parameter, the less tolerance is applied.
Clarity. Defines the acceptable noise level in price action while the pattern is emerging. The higher the strength of this parameter, the less pronounced price moves are accepted.
7. On the Display tab, the following options are available:
- Levels. Choose which levels you would like to display next to the pattern. Customize the visual parameters of the levels: colors, line style, and line width. You can choose different parameters for different levels.
- Pattern line. Define the visual parameters for pattern display: color, line style, and line width.
8. All the specified parameters can be set as default. Click the Set as default button so that all the patterns added further to the list will have the same parameters as the current one. Clicking the Reset button will set all parameters to previously saved defaults.
9. Use the split button below to save the changes. Click Apply to save the parameters for the currently selected pattern only. Click Apply to all to save the parameters for all patterns on your list. You will be redirected to the Select patterns dialog.
10. Click OK. The system will start searching for all chosen patterns right away.
11. When a pattern is found on the chart, you can right-click it to fine-tune its parameters, remove it from the chart, or hide all the patterns.
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