APPLYING Figonacc! ANaLyais To Price Action ‘This workshop will teach you the most practical way to apply Fibonacci ratios to the price axis. Joe DiNapoli is recognized around the world for his understanding of the subject. Discover how to mix leading (Fibonacci) and lagging indicators for a high- accuracy, low-risk trading approach. Find out how to enter strong running market, moves “safely” and where to place stops for maximum protection and minimum expo- sure, See how to calculate pre-defined profit objective points and how to employ the three-period money management rule to maximize profit and minimize heartache. Hear why specific Displaced Moving Averages are a superior trend containment indicator and. why a unique application of the MACD/Stochastic trend indicator yields superior trad- ing results. ‘When you leave this session, you will understand the proper and practical applica- tion of Fibonacci ratios to the price axis and you will have access to a trading style that has the capacity to produce an exceptionally high number of winning trades. Joe DiNapol an internationally recognized lecturer, widely acclaimed author. and researcher, has over twenty-five years active trading experience. Joes exhaustive investigations int dis- placed moving averages, his creation of the Proprictary Oscillator Predictor, and in particular, his practical and unique method of applying Fibonace Rais othe price axts, maks him one of today’s most respected experts in these areas As president of Coast Investment Sofeware, Inc, located on Sista Key n Sarasota, Florida Joe continues to develop and deploy “high-accuracy” trading methods, using a combination of ieading and lagging indicators in unique and innovative ways. A registered Commodity Trading ‘Advisor, Joe has taught hs techniques to major financial institutions im Europe and Asia as well «sin the United States. His articles have appeared in rumerous technical publications across the United States and around the world SuperTraders Almanac selected High Performance Futures Trading, Power Lessons from the Masters, to which Joe contributed, as 1990 Book ofthe Year Joe has also authored the Fibonacci Money Management and Trend Analysis trading course, highly respected by insti tutional and independent traders alike. When Chuck LeBeau (Technical Traders Bulletin) asked his readers for names of successful traders they most wanted to sce intermewed, Joe DiNapolis name came up more often than any other A complete catalogue ofall TAG XVIII tapes may be ordered from /Aéleraté Seminars 701 yds, Sate 3900 * New Orleans LA, 70159-5991 (800) 535-7990 or (504) 542-4550 FAX (508) 592-4553 TAG XVIII New Orleans 1996 JOSEPH DiNapot Coast INVESTMENT ‘SSoFTWaARE 8907 Monier Pass Sesra Kev Sanasora, FL 94242 (S41) 36.3601 Fax (841) 348-3901 Copyaight DINAPOLI 1996, AIL Rigints ReservesTHE DILEMMA: You know the market is going up, you're sure of it, and you're long, but, ...you also know you aust have a stop. you place a stop and you get stopped out, just before the market goes exactly where you knew it was geing all along. ‘then, you get back in, at a new high, just in time for another pull back. So, you turn off the screen and go for a drive...when you come back, you luck out and find the market seriously higher. You're in profit and want some protection. So, you place a break even stop. Then some news hits. The market breaks hard, gets your stop, and promptly closes at contract highs. THE FRUSTRATION: break even, or When you're right the market, you los take excessive risk. When you're wrong the market you just lo: THE ANSWER: Understanding the proper use and context, in which to apply a high quality leading indicator. One that is designed to give you precise entry, stop, and targeted objective points, before the market ever gets there. If you turn out to be totally wrong in market direction, the indicator controls your risk. THE BOTTOM LINE: Buy pre-calculated dips in an up-trend, sell pre~ calculated rallies in a down-trend, place stops properly, and take precalculated profits. That's what this workshop is all about!THE THREE CATEGORIES OF A WINNING FUTURES TRADING STRATEGY 1. MANAGEMENT OF : = yoursel# = know thyself (overtrading) - understand your reasons for trading xcitement or profit ~ find what's hidden by researching your own monthly statements ~ your trading capital - 3 peried rule 2. COMPETENT TREND AND DIRECTIONAL ANALYSIS (Gagging indicators) + KNOW WHAT TIME FRAME YOU LIVE IN = MOVING AVERAGES fair ~ srocmasrres fair - TREND LINES, TREND CHANWELS fair = MACD & STOCHASTIC COMBINATION good = DISPLACED MOVING AVERAGES good = PATTERNS THAT WORK good + COMBINE ABOVE WITH PROVEN OSCILLATOR -cUDY IM A HIGHER DEGREE TIME FRAME i.e., OSCILLATOR PREDICTOR (leading indicator). THIS FILTERS TRADING SIGNALS, AND PROVIDES LOGICAL PROFIT OBJECTIVES. 3. PROPER APPLICATION OF FIBONACCI RETRACEMENT & OBJECTIVE ANALYSIS (leading indicator) = PINPOINT MARKET ENTRIES ~ prnporwr stops = CALCULATE LOGICAL PROFIT OBJECTIVES GOAL * MINIMIZE RISK + INSURE A 70-80% PROBABILITY OF GAIN * INCREASE YOUR EQUITYSPZ05R 10/0 MATH. CHA _as@612 to o51zz0 foecina Fises | pant wre | ly mize | ILLUSTRATES A NON-DISPLACED MATHEMATICAL AVERAGE yt | cuare a \ 2e8a1 | NSS: 2e240 | | ih al” il / 19630 | ONE ADVANTAGE OF USING TIME DISPLACED MOVING AVERAGES OVER STANDARD MOVING AVERAGES IS IN THEIR ABILITY TO DECREASE "WHIPSAW" SIGNALS.BTiS Tera oar OE CHART 3 |, “ 1 bw att e = juoz joe m po jal mo TS a is Saw Tiers wi FTF patty Charts 3 & 4 illustrate one advantage of using Displaced Moving Averages over a non—displaced MA of the same period, i.e. DMAs reduc: "whipsaw" action. — CHE-SEP-S00-Stack Thdex —Faeure = -SPUS T7000 Bescoo | wf Beacea | CHART 4 in B3s00 hl. sse-00 > Isasoo | whe Bae iy Baas sayy oo | i aan a 20-00 | oe : 15.00 | Esses | fze.88 fees 33 3888 on ipo faso.00 58:00 fro 27i——a7t 373—s7t Zr 773" _OaityChart 4.1 i 11203, chart 4.2 Chart 4.1 illustrates the daily Long Gilt with both the x5 and the 25 (ron-displaced) MA. In a number of instances, the non-displaced MA created whipsaws where the DMA did not (one tick tolerance). Chart 4.2 illustrates the 25x5 DMA on the weekly Long Gilt.THM Canadian Dollar Fat > COUS 2500 5 10.7450 ¢ lo-2400 na 40.7350 ke «\ fo.2300 ues NE ase ih ‘0.7200 7200 lo-r0s0 l7000 6950 lo.ca00 Charts 5 & 6 illustrate how the 3x3 DMA cups market action "C" after a confirmed sell "S" Eno cars. cDUS.. 10.7450 10.7400 hat jie v9.7 350 E + 10.7300 hele E. + thy 10.7250 +t . 0.7200 10.7150 471? S71 §7is 671 DailySPURGR 2/9 SINPLE che 369625 to sseo11 pectnaus z a 2762 | 25682 | 23556 | SHORT POSITIONS FAVORED zsiza | LONG POSITION FAVORED ‘The Double Repenetration Signal came from a disastrous market experience but it has proved to be a huge winner over time. The Double Repenetration Signal, is a major directional change pattern, defined by the 3x3, on a daily, weekly, or monthly chart. It usually forecasts a significant and dramatic market move.eek _BDcon 2/3 SIMPLE cna 921213 to o5e714 vamos» Sarees acon py rhans Ses oe PLEROR ee] 12323 | DOUBLE REPENETRATION SELL SIGNAL 79! 11903 | 12799 | 32624 | 11529 | —— | poUBLE REPENETRATION BUY SIGNAL FAILURE The Double Repenetration Signal — 1993, forecasted a huge break in Bonds. Lacer, at Fibonacci support there was another Double Repenetration which failed. A failure of a Double Repenetration Signal is in itself a signal and in this case, it correctly forecasted still lower pricol r obi ” \ tpt a on wy Chart 8.2 (now) - more Double Repos.Chart 6.3 Monthly Gold - more Double Repos —— cs Tos aaa il i Chart 8.4 Oil - more Double ReposChart 8.5 - more Double Repos heb hp ah al’ ae peat Chant 86 - more Double ReposCLNOSR 3/3 SIMPLE cna 930300 to 950530 Precinay FIBONACCI RESISTANCE Th Repenetration signal occurred on the close, at Point A, on 05/09/95. The MACD/Stochastic trend indicator allowed you to anticipate this signal on both daily and intraday time frames See charts 10, 11, £12. The daily MACD/Stochastic was in a sell mode at the close of 05/02/95. The stronger MACD remained in a sell mode through t! rally back to Fibonacci resistance at Point R. me_.213 198.199 BrPPIREE 502208NYME Crude oi -— CLN! ati btsin Mp terenced permteny: reer! 1522 12:00 }573 12:00 [574 12:00 [575 12:00 [578 12:00 [579 12:00] The 30 minute MACD/Stochastic went into a sell mode at 11:00 AM, on 05/08/95. NYME Crude Oi] -- CLNS chart 12 are si i wpe 20.50 Th ety . sestebty pte att lhy ype Hatt Peat eyo 20.00 High = 20.10 ors x 20.08 me 30.07 : Modified Stachastic. Maca = 0.0272 Signet = 0.0314 4726 4727 W728 B71 1572 S73 1574 1575 B78 S75 1 60 min The 60 minute MACD/Stochastic went into a seil mode at 1:00 PM, on 05/08/95.* PRIMARY RATIOS * RETRACEMENT RATIOS FIB EXPANSION RATIOS 302 618 -618 1.00 1618 FIBNODE EQUATIONS Fa= A (A-B) .302 FS = A - (AB) -618 FIBNODES ARE NUMBERS GENERATED FROM THE APPLICATION OF ‘THE ABOVE EQUATIONS. Two or more Fibnode pairs are created per market swings (wave). They will elicit support if they are approached from ~bove or resistance Af approached from below. — on oo sl cHART 14OBJECTIVE POINT EQUATIONS op=B-arc OBJECTIVE POINT cop = 618 (BA) + © CONTRACTED OBJECTIVE POINT XOP = 1.618 (B-A) + © EXPANDED OBJECTIVE POINT objective Points provide you with 3 logical profit objectives for any ABC Market move. Which of the three Objective targets are met depends on the strength of the farket. Generally speaking, OP targets are met more often than COP targets. IOP-targets are least frequently fullfilled. Wave Dis shown reaching price objectives at different times for clarity only. This analysis says nothing about time. r0P ! c I 1 > | / ! 7 8 . cor yy rea cop 1, 4 c or \ \ \ at xoP cHART 16 HART 15Chart 16.1 Confluence pinpoints the support area on the monthly D-Mark Chart 16.2 Daily D-Mark response. after confluence is hitFIBNODE CONFLUENCE UP_WAVE ‘KI pies . 16.3BDUGSR 3/3 SIMPLE CHA 941207 to 950629 D z 1 CHART 17 | | CHART 17 illustrates a daily bond market Double Repenetration sell signal. jn Point’ Number 11310 He 22421 Copyright (c) 1995 CIS, Inc. se | Byoytez2 295482°C. ae (atizze ezaiaea cna=tises CHART 18 Objective Points i a cop = 11231 5 Ob = 11215 ee é xOp = 11128 : a1a2a “3 CHART 18 and the was FIBNODE FILES ‘ jon illustrate how to 11310 position yourself i ws fn a highly volatile ua day with minimal risk 22228 ti and a defined profit.28 for % 10:29:18 Point value ‘Db jective Fonts PE vatue #28275, Bol 7A 7427 7. 19455 78 ease = = f 2370) 17684 a7 | ae ATR? | = = A, = = of fy 3 =| = 4 saa! jeane. / 5642 HUHNE When trading Forex Markets, it is very helpful to keep track of properly computed Fibnode and objective locations on the continues Futures chart, as well as on the cash instrument. By doing this, you can look for price to Fibnode or price to price divergence rather than rice to indicator divergence. Bel wher Hig Ree | 26-ABaSEnor 21872 Cerone Point Number Sur *‘Fif | Boone Number Resistance Por He 6323 15838 Copyright (c) 1995 CIS, Inc. 28 Apr 96 18134455, Fount’ value Oosective Points 78 Apr 96 10:33:57, Fount" value’ Obsective Points eva ers eee 13445, 14628 2 137Chart 18.3 1 Sep96 152519 Updates 00700/0000 Pont Value Objectwe Ports Fle BDMO2 12204 Focus Number File BOCONWK1 Focus (Low fer the suang) in 32nd Pont Number Resistance Fb Nodes Pon (Enter lowest reaction high st) yom Focus Number Fle 8DMO2 Focus (High forthe swing) in 32nd Pont Number Suppor Fp Nodes Ponty (Enter highest reaction low Nis!) Future == SPMS 's2e.s0 i CHART 28 a {528.00 s27.80 ‘527.00 iy | 526.50 smats {526.00 1525.50 ‘p2s.00 's24.s0 is2a.00 is23.50 523.00 ‘s22.s0 $522.00 js2i.so js21.00 's20.50 's20.00 i Copyright (c) 1995 CIS, Accompanying FIBNODES program printouts pinpoint entry and exit levels to the tick on entry and within one tick on exit. It is critical to understand the issue of X'd trades. See STOCKS & COMMODITIES magazine, March issue 1995.UtiSt veg -aTxe ue paase6Gns souepnad ‘opera oa uy em quBya oa sem 1 ybnoua uaag “d¥S 943 30 TeyaUEROd PyMbyITT +1 SeaezasnTTy Gz TUVHD OzzzsS Ob22S OSZZS OEZZS OZZZS OOS Ob'ZZ5' 9T:S1 OF7zs OEzzS Oz22s Or'z2S O25 OSTZS OOZZS OGTZS SoZ OS ST:St O6TZS OBTZS O2TZS O9TZS OSTZS OLZS OOZZS FIST 0672S OBTZS O2Tz5 O9t2s OSTZS OETZS O2TZS OZ OOTZS OFFZS UZTZSy O °S OFTZS OSTZS NITZS O2TZS O6IZS OOEZS OVezS OO'EZS O6'%2S O8'225 O22Z2S SezzS O8ZZS 06225 ONEZS Orezs SO'EZS OOEZS OGZZS OBZZS SezzZs 02225 09225 1ST Q2zzs s9z2G O9z25 SSzzG OS'z25 OFzZ5 Sh22S OS7%2S 0922S eS9ZZG O27ZZS S2zZG OB~ZS S2zZ5 OL:ST OB'2zS SB'7ZS 06725 S6ZZS OD'EZS SOEZS OVEZS STEZS OZEZS OTEZS STEZS GOST OZEZS SZEZS OEEZS 02'EZS SVEZS OVEZS STEZS OZEZS SZEZS OEEZS SE'EZS OFEZS 80:5T SE'EZS OVEZS Sh'EZS OS'EZS SS'EZS O9'EZS SIEZS OLEZS GLEZS 20:51 OBES SB'EZS OGEZS SB'EZS OBEZS GZEZS OL'EZS S2'EzS OLEZS SIEZS OVEZS SI'EZS OLEZS eSZEZS OB'EZS S2EZS 90:5T OB'EZS SZEZS O2E2S SVECS OFEZS OLEZS SIEZS OFEZS SHEZS ULES GZEZS sU:ST S6/b 7S sore; - i - 1S B OwTL 6t aawno any — X@Pul 42098 OOS dBS AHO - Shas*** KEY OF THE DAY INDICATOR *** The “KEY OF THE DAY" indicators is displayed on a variety of charts pictured in this instructional information. DEFINITION: ‘The “KEY OF THE DAY” is a number which is derived by computing the 3 day simple moving average of the close and displacing it forward in time three days. A series of these numbers connected together form the proprietary trend indicator Used by CIS for very short term futures or options trading. METHOD OF CALCULATION: A computer is NOT necessary, a calculator is NOT n You may start with any cay. EXAMPLE: If we start with 96/06/12, we can calculate the “KEY OF THE DAY" for Sept S&P on 95/06/19. DATE -95 CLOSING PRICE KEY OF THE DAY ‘ 536.80 6 540.80 6 540.60 6 542.80 6 543.90 6 549.65, 539.40 6 549.30 341.40 6 548.95 342.43 6 545.45 6 347-62 3 549.30 Wwe simply add the closing price on 6/12 to the closing price on 6/13. To that sum we add the closing price on 6/14. We divide that total by 3, co optain the result. This is what is commonly known as the simple 3 day Moving Average of the close. Convent:onal wisdom would place that number on the chart on 5/06/14. We “displace” it forward 3 days. Therefore the che "KEY OF THE DAY" for numper calculated, represents 95/08/18 How CAN THE KEY OF THE DAY BE USED? OF THE DAY" is a very effective TooL for short term trend. :t can be used in a variety of ways in actively traced cions markets. space and iime l.mitations prevent 3 more detailed discussion herein. or further information sefer =o NOTES FROM A TRADER” and the FIBONACCI, MONEY MANAGEMENT AND TREND ANALYSIS IN HOME TRADING COURSE", cotn authored by Joe DiNapol:.Enhancements programmable on TRADESTATION using Joe DiNapoli's Techniques The studies Joe DiNapoli uses in his trading and described in his 1995 TAG Workshop, have been thoroughly researched and applied’ to years of on line trading. Close approximations simply aren't good enough. Many of the software packages available today do not adequately create or accurately reproduce these studies. The following formulas and user inputs are necessary to simulate the studies shown in Joe DiNapoli's TAG XVIT Workshop, using TRADESTATION software. MACD (DEMA) Dual Exponential Moving Average To simulate exporential inputs .213, .108, .199 whole number int 3 are required. Use the standard MACD st | with the following inputs. FAST MA 8.3896713 SLOW MA 17,518518 MACD MA 9.050251 DISPLACED MOVING AVERAGES 3 PERIOD MA of close DISPLACED FORWARD 3 PERIODS 7 PERIOD MA of close DISPLACED FORWARD 5 PERIODS 25 PERIOD MA of close DISPLACED FORWARD 5 PERIODS PERIOD = DAY, WEEK, or MONTH DETRENDED OSCILLATOR 1 PERIOD MOVING AVERAGE of close (the close) minus N PERIOD MOVING AVERAGE of close PERIOD = DAY, WEEK, or MONTH N= 7 0R3MODIFIED STOCHASTICS MITT LL LLL LL LILIANS AANA Generate the following formula: INDICATOR Name : Stochast icMod(JoeD) TIIUTLLT ATTA TLL LEOPEX\\ WW Input: FastKLen (8) ,SlowKLen (3) , SlowDLen (3); Plot1 (IFF (CurrentBar 1,ModSlowK ( SLOWKLEN, FASTKLEN) , Average(FastK(FastKlen) ,SlowKlen) ),"$K"); Plot2 (IFF (CurrentBar 1, ModS lowD ( FASTKLEN , SLOWKLEN, SLOWDLEN) , Average (Average (FaStK(FastKlen) ,SlowDlen), SlowDlen)), "&D IF CheckAlert Then Begin IF Plot1 Crosses Above Plot2 or Plot Crosses Below Plot2 Then Alert = TRUE; End; USER FUNCTION Name : ModSlowK Notes: Input: SlowKlen(Numberic) ,FastKLen(Numberic); ModSlowK = ModSlowk[1}+( (1/SlowKLen) *(FastK(FastKLen)- ModSlowK(1))) User Function Name: ModSlowD Input: FastKLen(Numeric) ,SlowKlen (Numeric) SlowDLen (Numeric); ModSlowD = ModSlowD { 1}+( (1\SlowDLen) * (ModS1lowk (SlowKLen, FastKLen ~ModSlowD{1})) Formulas.TSBelow is a listing of COAST INVESTMENT SOFTWARE, INC. products and services, of most interest to TAG XVIII attendees. All techniques and products are consistent with Trade Station use. TEACHING AND TRAINING Joe DiNapoii's, "FIBONACCI, MONEY MANAGEMENT, AND TREND ANALYSIS IN HOME TRADING COURSE" It consists of eight 90 minute audio tapes, a 100 page professionally illustrated Instruction Manual, a high quality, wide span, Proportional Divider and an Applications Manual describing how to properly use the divider $475.00 THE MINI COURSE is an abbreviated, inexpensive version of the Trading Course. It contains two, 60 minute audio tapes, and an accompanying manual, as well as the Proportional Divider and the Applications Manual. $189.00 PRIVATE SEMINARS Two day, intense tutorials are held in the trading room during trading hours. Prerequisites apply and availability is limited. $1000.00 TRADING SOFTWARE FIBNODES A computerized Fibonacci Retracement and Objective Calculator, designed specifically for hectic, high-pressure intra-day trading and position trading where high accuracy stop placement and targeted "profit objectives" are a must The Fibonacci levels are calculated and presented in a manner consistent with Joe DiNapoli's approach. $595.00 THE CIS TRADING PACKAGE A complete, affordable computer software graphics trading package. It’ competently provides EITHER end-of-day or intra-day signals and has the proprietary "Oscillator Predictor" study, as well as other studies Mr. DiNapoli recommends for competent trend analysis and directional techniques. $295.00 CAPTURE Downloads a library of intraday files by monitoring the DBC Signal :a feed. CAPTURE presents a very inexpensive method of deve: ing a comprehensive intra-day data base on stocks, options, futures, and indexes $99.00 LOTUP Downloads a variety of daily price data from the DBC Signal data feed, from which a comprehensive historical data base can be constructed. $99.00 cis.pro