Fibonacci Clusters

This program can be installed in any IBM compatible computer using a Microsoft Windows platform. The program is designed to give you (4) outputs for either Support Levels or Resistance Levels at any one time.

fcex

As every Trader knows all trend moves starts from a SIGNIFICANT HIGH POINT (SHP). or a SIGNIFICANT LOW POINT (SLP). While the market is trending away from these SHP's and SLP's, there will be "normal" corrections (pit stops) going contrary to the main trend. It is these "normal" corrections (pit stops) we need to "capture" in order to generate our Support/Resistance levels.

TO FIND RESISTANCE

For example, the market has made a SIGNIFICANT HIGH POINT (SHP). Now the market proceeds to correct, contrary to the main trend and puts in a series of SWING HIGH POINTS (SH), finally registering a SIGNIFICANT LOW POINT (SLP). Observing the chart, you can easily identify the highest high (SHP) and the lowest low (SLP) in the trend and a series of SWING HIGHS (SH) that fall between the two extreme points. You need to identify these two prices.

TO FIND SUPPORT

For example, the market has made a SIGNIFICANT LOW POINT (SLP). Now the market proceeds to rally, contrary to the main trend and puts in a series of SWING LOWS POINTS (SL), finally registering a SIGNIFICANT HIGH POINT (SHP). Observing the chart, you can easily identify the highest high (SHP) and lowest low (SLP) in the trend and a series of SWING LOWS (SL) that fall between the two extreme points. You need to identify these two prices.

Confluence gives you unlimited possibilities. Some technicians have determined that by combining multiple trends with Fibonacci Projections, that produce the same (or very similar) numbers, the Support/Resistance level is thereby strengthened, making the results more reliable. The greater the confluence the more significant the number. For example a .382 number from one trend when matching to a .618 number to another trend with, for example a .50 number from a third trend, will produce a more powerful number. There is validity to this concept. Our method takes it one step further by allowing you to calculate from multiple trends (if you wish), and by our method of projecting Support and Resistance by identifying multiple swings within both those trends.