This template is my modification of TOC’s excellent template “Opening Range and Pesavento Swing V2”, May 9, 2005. The power of TOC’s template is that it dynamically calculates and draws the Fibonacci retracement and extension zones for each price swing as time progresses. Uniquely, only the relevant zones to current price action are shown, once price travels outside that zone, it disappears and the new zone levels appear.
Opening Range Modification:
The template Objects “OR S&R1” and “OR S&R2” define the opening range parameters, and vary from TOC’s. Lines A and B in “OR S&R1” define the open range time, in this example, the price range in the first 30 minutes of the trading day. This time can be changed to trader preference. The additional lines are simple multiples of the OR added to the top and subtracted from the bottom of the OR. So, “or+X1” line is the OR added to the OR high, “or+X2” is 2xOR added to the OR high, etc. And, “or-X1” is the OR subtracted from the OR low, etc.
Note that I used two DYOs for the OR because I found that the last 2-3 line labels of the DYO do not show on the chart consistently.
Also, I’ve found that the opening range is only consistently accurate for minute charts in Ensign. Volume, tick and range charts vary considerably.
Pesavento Swing Modification:
I’ve added a second Pesavento Patterns study object marking the HH, LL, HL, etc. swing levels, and Ensign feature added by Howard in late 2006. Note that the “Min. Size” (the minimum swing price length) and “Min. Bars” (the minimum bar count for each swing) parameters must be the same for each Pesavento Patterns object.
As I only want to see the Fibonacci zones, I removed some other objects from TOC’s template and made some slight adjustments to the zone boundaries.
Observations:
Although I have developed and used this template trading the ER2 index futures, this template can be applied to any trading instrument. I have tested it on many stocks, crude oil futures and the EUR futures. It also can be used for any time frame, minute, volume, tick and range (note the OR exception above).
Note, however, that the Pesavento Pattern parameters must be tuned for each instrument and time frame. For example, the Min. Size for a $30 stock will be much less than for an $800 index future, and the Min. Bars, will be typically greater for a tick chart vs. a minute chart.
Thanks again to TOC for his excellent DYO.
fibzones