Many market technicians have stated that the Fibonacci seqences are good for analyzing price movements like retracements. However, this is only part of the puzzle as time is also very important as well. This product helps by emphasizing time moreso than price. As W.D. Gann said, “time is just as important as price”. They are actually one and the same.
The sequence in which each number is the sum of the two preceding numbers, is known as the Fibonacci series: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, where each number is the sum of the previous two.
The purpose of this indicator is to provide the TradeStation user the ability to identify a change in trend or a change in volatility as measured in trading ranges. Fib Plot is designed to provide signals using either a daily or intraday chart. Continuous futures data contracts are good for this as well as equities.
This indicator is completely open source and is thus not only a great addition to your trading toolbox but also a great EasyLanguage learning resource for both beginners and experts alike!