The Fibonacci sequence involves the use of ratios, and the two ratios that are focused on in this trading tip are 1.618 and 2.618.  Time can be forecast by measuring the horizontal time period between two points A and B, and multiplying by the Fibonacci ratios.  The result is plotted rightward from point A.

Fibonacci time projections can be made from top to top, bottom to bottom, or top to bottom.  Because of the multiplicity of swing tops and bottoms, there is the problem of a multitude of possible relationships.  One solution to the problem is to use this tool in conjunction with other time-oriented information, such as Elliott wave counts or cycle analysis.

The following chart illustrates three Fibonacci Time Projections.  Each time period measured is marked with blue lines and arrows labeled A and B.  The forecasts are marked with red lines and labeled for the Fibonacci ratio used.

Fibonacci Time Projects are easy to make using the Fibonacci Ruler tool in Ensign Windows.   The percentages, colors and markers are configured on the tool's property form.

The Trends study is applied to a chart by clicking on the Color Bars button, and selecting Trends in the list.  Bars in an Up trend are colored with one color, such as green, and bars in a Down trend use a different color, such as red.  This is the logic used to create the Trends Color Bar study.

This code is called in a loop so the test is made for each bar on the chart.  The rPaint array will store a value of 1 to color the bar for an Up trend, or the value of 2 to color the bar for a Down trend.

if rPaint[y]=1 then begin 
  if (r[w].h=r[y].h) and (r[w].l<r[y].l) then begin rPaint[w]:=2; exit; end;
  if (r[w].h>=r[y].h) or (r[w].l>=r[y].l) then begin rPaint[w]:=1; exit; end;
end;
if rPaint[y]=2 then begin
  if (r[w].l=r[y].l) and (r[w].h>r[y].h) then begin rPaint[w]:=1; exit; end;
  if (r[w].l<=r[y].l) or (r[w].h<=r[y].h) then begin rPaint[w]:=2; exit; end;
end;
if r[w].h>r[y].h then rPaint[w]:=1
else if r[w].l<r[y].l then rPaint[w]:=2
else rPaint[w]:=rPaint[y];

r[] is an array of bar records.  The .h field is the bar's high.   The .l field is the bar's low.
The index w references the bar being tested, and y is the index for the adjacent bar to the left.

The programming logic can be expressed with this word description:

If the previous bar's trend is Up, then make two tests:
  If the current high is equal to the previous high and the current low is below the previous low, then color this bar Down.
  If the current high is at or above the previous high or the current low is at or above the previous low, then color this bar Up.

If the previous bar's trend is Down, then make two tests:
  If the current low is equal to the previous low and the current high is above the previous high, then color this bar Up.
  If the current low is at or below the previous low or the current high is at or below the previous high, then color this bar Down.

If the current bar has not be colored by the above tests, then make these tests:
  If the current high is above the previous high, then color the bar Up.
  If the current low is below the previous low, then color the bar Down.
  If the bar's trend is still undetermined, let it be a continuation of the same trend as the previous bar.