FibGrid Settings for TOS

Note: Updated February 26, 2012 to include FibGrid 3.2 settings

FibGrid 3.0 introduces some new configuration parameters that permit the use of FibGrid with symbols that wouldn’t work with previous version and to have a greater degree of control and tuning of  how grids are displayed for all symbols.  This guide is designed to explain the settings and help in the process of selecting values that will work well.  It is divided into two sections.  The first describes all the parameters, and the second lists all the built-in symbols and our experience with settings that work well.

Feel free to use the comment section at the bottom of the page to share your own experiences.  We have an active, enthusiastic group of traders using FibGrid and it would be great to see everyone participating in helping each other succeed.

Description of Configuration Parameters

Grid Parameters

The grid parameters allows you to select from a set of built-in parameters derived from historic prices, or to elect to use manual start and stop values, or the special “chart range” option that will be discussed in a different article.  All of the symbols with built-in grid parameters are discussed below, along with suggestions on other settings which work well for those symbols.

Grid Section

Each FibGrid contains four grid sections, but the TOS version only displays one of the four sections at a time.  To see prices interact with grid lines, you need to adjust FibGrid to have the right grid section for where the symbol is currently trading.  This is discussed in the TOS installation and configuration video.

As of FibGrid 3.2a, some symbols have grid sections that go in reverse order.   That is grid section 1 covers the region with highest prices and grid section 4 covers the region with lowest prices.   These symbols are identified below.

Subsection

Selecting a subsection allows you to “zoom in” on one portion of a grid so that grid lines are closer together and to effectively get six or seven levels of subdivision instead of  the usual five.  More often than not, traders want to remove smaller degree FibGrid lines, not add them.  However, some grids that use the new semi-geometric calculation mode draw lines further apart, creating the need for this parameter.  When subdividing:

• Subsection 1 zooms in on the region between the lower  fire line and the lower tree line.
• Subsection 2 zooms in on the region between the two tree lines.
• Subsection 3 zooms in on the region between the upper tree line and the upper fire line.

An additional level of subdivision is supported.  Subsection 1.1 will show only the lower portion of subsection 1, etc…

Calculation

The calculation parameter has two settings:

1. Arithmetic (the way all calculations were done prior to version 3.0); and
2. Semi-geometric (a new way of calculating introduced in 3.0 for drawing grids for gold futures, treasury futures, and some other symbols.

Arithmetic is the default and if you leave it set to this value and choose the default for the other parameters that are new in 3.0 then it will draw grids the same as in previous versions.  Nevertheless, it is useful to consult the list of symbols below; it has many suggested settings.  You can also experiment and see if you think using semi-geometric improves the grid levels for the symbols you trade.  However, you will most likely need to select different grid sections when switching between arithmetic and semi-geometric unless prices are currently within grid section 1.

Projection Mode

FibGrid usually draws the lowest fire line of grid section 1 at the bottom of a wave 1.  Projection mode shifts everything up to an alternate point that depends on the projection mode chosen.  Options are:

• Basic:  This is the default.  Grids start at the bottom of wave 1, just as they did in versions prior to 3.0.
• High: This setting shifts everything up so that the lowest grid line is at the end of wave 1 instead of the start.
• 61.8%  level: This setting shifts everything up so that the lowest grid line is 61.8% of the distance between the start and end of wave 1.
• Fixed point: allows for the entry of a specific price level where grid lines start through the use of the Projection Point parameter.

These alternate projection modes are rarely needed and choosing basic will retain the same behavior of prior versions.  So far I’ve found them useful in forex, and all the EUR/USD charts I show generally have projection mode set to 61.8.  You will often find that when selecting a different projection mode, grid lines will appear at the same locations as before, but the type of grid line (fire line, tree line, etc…) changes.  Therefore, when trying out alternate modes, look for ones where the larger degree grid lines align with more significant turns.

Information about each of the built-in symbols below identifies alternate projection modes where we have found them useful.

Display Levels

By defgault, FibGrid displays five levels of lines.  If the chart is cluttered and you wish to see fewer lines, you can do so by reducing the display levels parameters.  The default value of 5 will show all lines.  Reducing it to 4 will then only show the four most significant levels of grid lines, etc…

For those of you who rarely use the fifth level of line (called “moguls”) and who are concerned about resource usage in TOS, I will produce a special version of FibGrid which permanently removes the fifth level and will significantly reduce FibGrid resource usage.

Start and Stop

Start and Stop are two parameters which only matters if you have set grid params to manual.  They are a means for you to override the wave 1 prices built-in to FibGrid or to set values for a symbol that isn’t built-in.  If you are not using manual grid params then these values are completely ignored.

Note that these are only Input Parameters.  Do not expect that TOS will display the start and stop values that FibGrid is using internally when you change to a different grid param.

Projection Point

Projection point is a parameter that only matters when using a projection point of “fixed point” otherwise it is completely ignored.

U. S. Indices, index futures, and index ETFs and Related Symbols

$DJI 2002

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$DJI 1932

These parameters are based on a first wave that began in 1932 and continued through 1987.  We have used it with the default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

Because of the long-running nature of this wave, one might want to experiment with changing to semi-geometric calculation to see if it gives good results.  If so, one might discover a need to use a subsection in semi-geometric calculation if the grid-lines are far apart in semi-geometric.

YM 2002

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

DIA

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

SPX 2002

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

SPX 1932

ES 2002

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

SPY

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

COMP 2000

These parameters were updated in FibGrid 3.2a.  Note that the new settings have grid sections that go in reverse order.   That is grid section 1 covers the region with highest prices and grid section 4 covers the region with lowest prices.   The default parameters are recommended:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

NDX 2000

These parameters were updated in FibGrid 3.2a.  Note that the new settings have grid sections that go in reverse order.   That is grid section 1 covers the region with highest prices and grid section 4 covers the region with lowest prices.   The default parameters are recommended:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

NQ 2000

These parameters were updated in FibGrid 3.2a.  Note that the new settings have grid sections that go in reverse order.   That is grid section 1 covers the region with highest prices and grid section 4 covers the region with lowest prices.   The default parameters are recommended:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

QQQ

These parameters were updated in FibGrid 3.2a.  Note that the new settings have grid sections that go in reverse order.   That is grid section 1 covers the region with highest prices and grid section 4 covers the region with lowest prices.   The default parameters are recommended:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$DJT 2002

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

RUT 2002

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

TF 2002

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

IWM

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

OEX

These parameters mark the start and end of a first wave that began an ended in late 2002.  It has worked well for some time with default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

Forex Symbols

$DXY

The U.S. Dollar index began what we believe to be a first wave up in March 2008 which ran through March 2009 and have based grid parameters on these values.  For parameters, use defaults:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

DX

The U.S. Dollar index began what we believe to be a first wave up in March 2008 which ran through March 2009 and have based grid parameters on these values.  For parameters, use defaults:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

EURUSD2000

The Euro began a rise in 2000 which we are viewing as a recent first wave and that’s what we’re basing our grid ranges on.  We have found that a deviation from default parameters produces good results for the Euro:

• Subsection: none
• Calculation: arithmetic
• Projection mode: 61.8% level

Based on limited checks we think that the new semi-geometric projection mode may have some promise for the Euro.  One can experiment with with the following paramteres:

• Subsection: search for appropriate values
  
• Calculation: semi-geometric
• Projection mode: basic

EURJPY2000

The Euro began a rise in 2000 which we are viewing as a recent first wave and that’s what we’re basing our grid ranges on.  We have found that a deviation from default parameters produces good results for the Euro:

• Subsection: none
• Calculation: arithmetic
• Projection mode: high

AUDUSD

We are basing parameters for the Australian Dollar on a rise beginning in 2001.  We have been using default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

GBPUSD

We are basing parameters for the British Pound  on a rise beginning in 2001.  This pair is new in FibGrid 3.0.  We have been using default parameters:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

Traders who watch this pair might consider experimenting with either the 61.8% or high projection modes to see if they give better results.  Changing the projection mode often gives many grid lines at the same location as other projection modes, but the importance of the grid line is different.  So one projection may give a fire line where another projection might give a tree line.  When experimenting with different projection modes, the best choice is one where the more significant turns tend to happen at the more important grid lines.

NZDUSD

Added at the request of one of our NZ-based customers.  We’ve checked the values with default settings, but considertrying different projection modes as described above for GBPUSD.

Interest Rate Futures

ZB

Thirty year bond futures trade inverse to yield and began a multi-decade bull market as yields declined from all-time high interest rates in the early 1980s.  and this is where we have to go back to in order to derive grid values.  dramatic rise in bond prices over that time requires that we use the new semi-geometric calculation that is new in version 3.0.

• Subsection: Select a value that works with current prices
• Calculation: semi-geometric
• Projection mode: basic

ZN

Ten year treasuries began their rise around the same time as the thirty year.  Ten year futures did not trade at the start of wave 1 in spot prices but they were trading at the end of wave 1.  Therefore, the starting point is not a pure value, but had to be imputed from other data.  Nevertheless, the values seem to be good.  Until the most recent highs in ZN, it was possible to use with arithmetic projection and those values proved quite good.  They can still be used with grid values >4, which is now possible in version 3.0 (shhhh….  don’t tell) or the new semi-geometric projection can be used.  Both sets of values are given and you can experiment with what works best for you.

First set:

• Subsection: Select a value that works with current prices or use none
• Calculation: arithmetic
• Projection mode: high
• Note: may need to use a grid section > 4
  

Second set:

• Subsection: Select a value that works with current prices
• Calculation: semi-geometric
• Projection mode: basic

Commodity Futures

CL

Crude oil futures work well with default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

NG 1

The wave count in natural gas futures is not clear.  Therefore we are providing two sets of parameters for the futures that correspond to two different possible wave counts.  Both work with default settings.  Experiment to see what works best for you.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

NG 2

The wave count in natural gas futures is not clear.  Therefore we are providing two sets of parameters for the futures that correspond to two different possible wave counts.  Both work with default settings.  Experiment to see what works best for you.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

GC 1

As of this update (July 4, 2011) GC trades above the highest level on these settings.   Use the GC2 settings for now.

Gold began a long-term bull market in the 1970s and the GC1 parameters contain those values.  The significant rise in gold requires the use of the semi-geometric calculation.  Here are the settings we use:

• Subsection: Select a value that works with current prices
• Calculation: semi-geometric
• Projection mode: basic

GC 2

As of this update (July 4, 2011) These are the preferred settings for GC.

The GC2 parameters are from what may be the first wave of a smaller-degree, more recent five-way move up in gold.  While the long-term wave one used in GC1 is quite obvious, this one is less so.  Nevertheless, it is included as a possible alternative to use with default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

SI

Silver futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

ZC

Corn futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

ZS

Soy futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

CC

Cocoa futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

KC

Coffee futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

CT

Cotton futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

ZW

Wheat futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

SB

Sugar futures work with default settings.

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

Dow Jones Global Indices:

$DJAU

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$GBDOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$DEDOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$TWDOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$KRDOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$DJCHINA

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$HKDOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$CADOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$SGDOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic

$FRDOW

Recommend default settings:

• Subsection: none
• Calculation: arithmetic
• Projection mode: basic