Fibonacci Expansions
Overview
Fibonacci Expansions are used to specify horizontal lines at price levels which are determined to be probable values of support and resistance based on the market’s previous range and a third extension point.
To apply the tool to your chart, select the tool from the Fibonacci tool group. With the tool selected, left-click once on the chart to choose a starting point. Left-click on the chart again to select the end of the range, and left-click on the chart again to select the expansion point. With all 3 points selected, move your mouse cursor to the left or right to extend the level lines, then left-click a final time to anchor them to the chart. The range from A to B (89.67 - 57.63 = 32.04 in the above example) will be expanded from C using Fibonacci ratios, ie 61.8% of 32.04 = 19.8 + 63.02 = 82.821.
Actions & Properties
Actions
Add Price Alert: Selecting this action will set a Price Alert at the value the Horizontal Line is positioned.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Fibonacci Expansions tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Fibonacci Expansions tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Fibonacci Expansions to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.
Levels: Click on this option to display the different Fibonacci Expansion levels.
To add a new level to the chart, left-click on the blue + button and enter the values as needed.
- Value - Sets the Fibonacci value for the expansion line. To change the value amount, click in the field and enter the new value.
- Line Style - Sets the line type, thickness, colour and transparency of the expansion lines.
- Visible - To hide a level, deselect the check box with the green tick.
Extend Left: Check this box to extend the Expansion lines to the left.
Extend Right: Check this box to extend the Expansion lines to the right.
Show Prices: This provides an option to show or hide the price value for each expansion line.
Show %: This provides an option to show or hide the percentage value for each expansion line.
Label Alignment: Allows you to select how the label is aligned against the end of each line. The options are top left, top right, bottom left, bottom right, centre top, centre bottom, centre left and centre right.
Font Size: Allows you to adjust the size of the text displayed for each label used in the Fibonacci Expansions. Moving the slider bar to the right increases the font size.
Scale Mode: Can be set to either Price or Percent. The Percent mode calculates percentage retracements based on the Logarithmic Scale, not the linear scale. For example, a 50% retracement of a move from 300 to 500 using a linear scale (Price Mode) is 400. The new scale mode allows for a logarithmic calculation to be used. Using the log scale the 50% retracement of a move from 300 to 500 is 387.30. The 50% level, when using the new scale method could also be referred to as the Geometric Mean between the two selected price levels. For the Percent mode to function, the chart must be set to Logarithmic Scale.
Show ABC Tags: Applies A, B, C labels to the anchor lines placed on the chart.
Anchor Lines: Deselect this checkbox to hide the anchor lines on your chart.
To add a new level to the chart, left-click on the blue + button and enter the values as needed.
- Value - Sets the Fibonacci value for the Expansion line. To change the value amount, click in the field and enter the new value.
- Line Style - Sets the line type, thickness, colour and transparency of the Expansion lines.
- Visible - To hide a level, deselect the check box with the green tick.
Anchor Line Style: This option expands to show the following:
- Line Style - The Line Style property allows you to adjust the type of the anchor lines displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the anchor lines. Moving the slider bar to the right increases the thickness of the line.
- Line Colour - Allows you to select the colour of the anchor lines. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
- Transparency - Use this slider bar to adjust the transparency of the anchor lines. Moving the slider to the left will increase the transparency of the tool.
- Visible - Un-tick this checkbox to hide the anchor lines from the chart.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.