High Probability Fibonacci Zones

Hi folks and fellow traders,

in this thread, I would like to discuss "High Probability Fibonacci Zones" as referred to in the attached PDF-file.

In order to make your trades more predictable and the trader more comfortable with their positions, we will have to find answers to the three basic questions of HPFZ.

No.1 - How often will a pre-defined Fibonacci Zone be reached?
No.2 - How often will a High Percentage Support Zone be the low zone for the day?
No.3 - How often will a predefined High Percentage Resistance Zone be the High Zone for the day?

The attached PDF says, in order to define the Fibonacci Zones for tomorrow, we will have to look the High + Low + Close of today and then project the Zones for tomorrow.

Step 1 - Creating the Zones
Add today‘s H+L+C divided by 3 = Balance Point C
Calculate 50% of today‘s range and add it to C = D
Calculate 50% of today‘s range and substract it from C = B
Add the entire day‘s range to the Balance Point C = E
Substract the entire day‘s range Balance Point C = A

Step 2 - Adding Fibonacci Support/Resistance Bands 1&2
Support Band 1 - Calculate .618 of the day‘s range and substract that from the Balance Point C = B1. (The area between B and B1 = Fib-Sup-Band 1)
Calculate 1.382 of the day‘s range and substract that value from the Balance Point C = A1. (The area between A and A1 = Fib-Sup-Band 2)
Calculate .618 of the day‘s range and add it to the Balance Point C = D1 (The area between D and D1 = Fib-Res-Band 1)
Calculate 1.382 of the day‘s range and add it to the Balance Point C = E1 (The area between E and E1 = Fib-Res-Band 2)

That‘s it for the day‘s preparation. The whole method of HPFZ is based on the question of „Given a certain close-open-combination, will there be a projectable and (highly) probable zone the market is going to reach?“

Therefore it is necessary to analyse a lot of data, which cannot be done by hand, and I will do my utmost to come up with a suitable solution. I am not in programming MQL, but I‘m quite famiiliar with php and MySQL, and as I can export data from MT4, I can analyse them based on the „rules of HPFZ“ in the familiar environment of a database.
As soon as I have finished this analysis, I will post the data here.

If you‘re interested, let me know and just leave a comment. You‘re welcome.

reserved for further data

reserved for further information

nice.. wait further details

[quote=Mr Hatch;3592522]Hi folks and fellow traders,

in this thread, I would like to discuss "High Probability Fibonacci Zones" as referred to in the attached PDF-file.

Mr. Hatch,

I am interested in reading more about your trading method.
Thank you for sharing.

alfa99

Status report:
Databases are created and filled, basic scripts are finished, but i have so many ideas, they need a bit of polishing first. Right now I'm fiddling with MT4 to get the calculated levels into an indicator. The indicator itself is ready, but I'd like to shorten the lines, so that they fit into the trading session.

This might take a bit more time, I guess, because this is the first time, I'm looking at mql.

cant you release the indicator the way it looks right now and starting to describe how to use it and how you trade it and so on just to start up the thread ??


best regards

This thread holds much promise, well done Mr.H Look forward to your work. PM me if you need assitance.

I think this may help. Try this pivot indi, use only fibs option.

It'll look something like this.

The good thing about this pivot indi is that you can alter the start time for any platform, so if you all want to use 00.00 gmt or 00.00 est doesn't matter where in the world your platform starts day you can change start hour.

Sorry that fib indi has different calc's of the zones, it doesn't tie up with the pdf.

I'm looking for this. the lines will be restricted by the duration of the trading session. If you need them later, you can just set the "ray-flag" in their settings.
I always find it quite tedious to look at charts with too many horizontal lines on them.

As I said, I'm not ready, just a teaser though. The lines on the right hand side are the valid zones for the forthcoming NY-session.

good work

I trade in Fib level and Zone..
Keen to see more in this thread.

Hi there,

I'd like to request for the high probability S/R by using Fibs zones calculation. But I don't know how exactly you calculate it, could you please give me a guide please?

Thanks!

TK

any update on this?

Attached an indicator mesauring these levels programmed by mr osama.

Thanks mr osama.

Let us see which levels are the best to trade.

Thanks

This seems like a good indicator somewhat but how do we tell the high probability areas for the day? And how do we calculate the percentages explained in the PDF?

Thank you for this brilliant indicator! Pippo