Fibonacci Time Lines

In “Automated Techniques For Intraday Traders” in this issue, author Andrew Coles suggests
the use of Fibonacci numbers and Lucas numbers to anticipate potential market reaction points.
The concept is to identify bars that are a Fibonacci or Lucas number of bars from a key bar on the
chart, then use this and other information to determine potential market reaction.
Here, we present indicator code that will identify bars that are a Fibonacci or Lucas number of
bars from a given “start bar.” Once the start bar is found by the code, a counter starts. If the
counter matches one of the Fibonacci or Lucas numbers discussed in the article, the bar is
identified with a PaintBar or ShowMe marker as set by the inputs. Multiple insertions of the
indicator with different colors, plot styles (PaintBar or ShowMe), and offsets can be used to
identify confluence of different insertions.
The EasyLanguage code is shown here. To download the code for the indicator and strategy, first
navigate to the EasyLanguage FAQs and reference posts topic in the EasyLanguage support
forum (https://www.tradestation.com/Discussions/Topic.aspx?Topic_ID=47452), scroll down
and click on the link labeled “Traders’ Tips, TASC.” Then select the appropriate link for the month
and year. The ELDfilename is “_FibAndLucasSeries_Tasc.Eld.”

EasyLanguage code for Fibonacci/Lucas time series indicator

_FibAndLucasSeries (Indicator)

{ TASC Article "Automated Techniques For Intraday Traders" - August 2011

}

inputs:
ELStartDate( 1110501 ), { Bar Date for start bar in EasyLanguage
format }
ELStartTime( 1200 ), { Bar Time for start bar }
FibBarColor( Red ),
LucasBarColor( Cyan ),
PlotAsPaintBar_0_or_ShowMe_1( 0 ), { to plot as a PaintBar, enter 0
or to plot
as a ShowMe, enter 1 }
ShowMeDotOffsetTicks( 10 ) ; { enter offset for dot if plotting as
ShowMe }

variables:
MyTick( MinMove/PriceScale ),
OkToCount( false ),
OkToPlot( false ),
PlotColor( 0 ),
BarCounter( 0 ) ;

if OkToCount then
BarCounter = BarCounter + 1 ;

if Date = ELStartDate and Time = ELStartTime then

OkToCount = true ;

switch ( BarCounter )
begin

{ Fib Series }
Case 5,8,13,21,34,55,89,144,233,377,610,987,1597,2584,4181,6785 :
 OkToPlot = true ;
PlotColor = FibBarColor ;

{ Lucas Series }
Case 3,4,7,11,18,29,47,76,123,199,322,521,843,1364,2207,3571 :
OkToPlot = true ;
PlotColor = LucasBarColor ;

end ;

if OkToPlot then
begin
if PlotAsPaintBar_0_or_ShowMe_1 = 0 then
begin
Plot1( H ) ;
Plot2( L ) ;
Plot3( O ) ;
Plot4( C ) ;
end
else
Plot5( L - MyTick * ShowMeDotOffsetTicks ) ;

SetPlotColor( 1, PlotColor ) ;
SetPlotColor( 2, PlotColor ) ;
SetPlotColor( 3, PlotColor ) ;
SetPlotColor( 4, PlotColor ) ;
SetPlotColor( 5, PlotColor ) ;

end ;

OkToPlot = false ;A sample chart is shown in Figure 1.

FIGURE 1: TRADESTATION, FIBONACCI AND LUCAS TIME SERIES INDICATOR. Here is a sample multidata
chart of IBM showing a five-minute chart in the top graph and a 15-minute chart in the bottom graph. The
FibAndLucasSeries indicator was applied twice to the five-minute chart (see start bars on the chart). The
second insertion was plotted as a ShowMe to allow for visual recognition of confluence of the PaintBar and
ShowMe markers. The bottom chart is a higher time frame chart with the indicator applied so that multiple
time frames can be analyzed.
This article is for informational purposes. No type of trading or investment recommendation,
advice, or strategy is being made, given, or in any manner provided by TradeStation Securities or
its affiliates.
—Chris Imhof
TradeStation Securities, Inc.
A subsidiary of TradeStation Group, Inc.
www.TradeStation.com