Walter Bressert's ProfitTrader 7.0: FibCounts
Accurate identification of cycle tops and bottoms keeps dollar losses low and increases the potential for sizable profits. The FibCounts indicator makes time projections that help increase the accuracy of buying cycle bottoms and selling cycle tops.
The FibCounts indicators forecast the standard Fibonacci points (13, 21, 34, 55, 89,144) into the future from any 3 cycle tops or bottoms identified by letters that match the letters in the indicators. An overlap, or cluster of Fibonacci points in the future will show time points (plus/minus several price bars) that often develop into cycle tops or bottoms. When these time periods match oscillator highs and lows, a greater accuracy of the mechanical Buy/Sell signals can be expected. Also, FibCounts matching FibPods will often indicate greater potential for significant moves following cycle highs and lows.

Chart#1 shows how cycles, oscillators and FibCounts can be combined for high probability cycle identification and trading. The highs and lows of the cycles are indicated by the dots on the price bars. The blue dots identify cycle highs; the red dots identify cycle lows.

The FibCounts can be plotted on a separate chart, or ideally, on a larger chart below the Fib Pod projections. Wherever they are plotted, a swing high or low, or oscillator high or low that coincides with one or more FibCount points has a greater potential of being a cycle bottom or top.

Two sets of FibCounts are plotted. The colored FibCount dots above the oscillators are calculated from points A, B and C. The small red dots at the left of the chart are below the price bars that begin the counts. The purple dots are for A, the green dots for B and the Blue dots for C. The FibCount dots that occur as the oscillator tops and bottoms, as at 1, 2, 3 and 4 show an increased potential for cycle tops/bottoms to form and be followed by tradable moves.

A second set of 3 FibCounts plotted from EFG runs through the oscillator subgraph. The purple dots are from E, the green dots from F and the blue dots from G. These FibCount dots increase the potential for cycle tops/bottoms at 1, 2 and 3, while helping to identify cycle turning points at 6, and 7.

The shorter-term FibCount points starting from the ABC and the EFG have many "hits" as indicated by the cycle tops and bottoms on or near cycle tops and bottoms as indicated by the vertical red lines. As the market moves out in time, the FibCount time periods lengthen so there are fewer dots; but notice the hits for the three FibCount points with the cycles and oscillators in August. Usually, we will look for a cycle top or bottom to occur within 1 price bar of the FibCount point in the shorter time counts. Two or three points can be used on either side of the FibCount point in the longer-term time counts. But it is not unusual for them to hit exactly, as they did in August.

Swing highs and lows and oscillator highs and lows that coincide with FibCount points have an increased tendency to develop into cycle tops and bottoms.


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