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forecast projection since this tool contains a rate of change function.
The Techsignal™ program uses a moving average to know whether you have chosen a high or low bar to
project from. If the Techsignal™ program cannot determine whether you have chosen a high or a low, it will
prompt you to enter "Low" or "High."
The Techsignal™ tool places a red sloping price target line and a corresponding blue target number on the
graph. Usually that cycle length number chosen represents, in securities, a typical trading time period you
are interested in, or what’s called a swing, or half of a full cycle, essentially the up swing or down swing side
of a trading move. For example, if Techsignal™ has identified one or more shorter cycles with periods
somewhere between say 12 to 18 data points, you would typically use one of those cycle periods. The
cycle period you choose will likely be visually close to the number of price bars observed in a typical up
swing or down swing in your data.
To make a Price Projection, double click anywhere on a high price bar of a swing and then double click on a
low price bar of the same swing, or in reverse order, depending on whether you want to project a price from
the high bar or from the low bar, and then hit the Price Projection icon. The first price bar you double click is
the bar from which a projection is made. The price projection can be up or down from either the high or low
bar; that determination comes later when you are prompted to select whether you will be using that first bar
double clicked as a high bar or low bar in your projection in the event the Techsignal™ program cannot
make that determination automatically. After you have double clicked both bars and before the price
projection, you are prompted to input a cycle length (usually a number between 12 and 18). Now the key
part. The direction of the price projection is determined by whether you type high or low to the next prompt,
if asked and assuming Techsignal™ hasn’t figured out your intentions.
If you doubled clicked on a high bar first and a low bar second (framing a swing), and then answered the
prompt that you intend to project from the “high” bar as a high, the price projection is down from the high
bar, or up from the low bar if you inputted projecting from a “low,” meaning Techsignal™ is instructed to use
that first bar clicked as a high to project down or to project up from the low of the swing. If you doubled
clicked on a low bar first and a high bar second (framing a swing), and then answered the prompt that you
intend to project from the “low” bar as a low, the price projection is up from the low bar, or down from the
high bar if you inputted projecting from a “high,” meaning Techsignal™ is instructed to use that first bar
clicked as a low to project up from or to project down from the high of the swing.
The slope of the red line drawn from a low or high bar toward the price target is determined by the average
price velocity based on the inputted cycle length. Hitting the “Clear Technicals” button clears this price
projection study, and also every other study on this chart, other than the cycles analysis. So, save the chart
before clearing a technical if you don’t want to recreate some of your other work.
Fibonacci Retracement Tool
The Fibonacci Retracement tool is a proprietary Techsignal™ tool designed to forecast future price targets,
support and resistance levels. This Tool requires two double clicks prior to a projection. If you double click a
high bar and then a low bar, the tool will project a price level upward from that low bar, and vice versa. If the
market or security breaks through these projected levels, the market or security is likely to continue in the
direction of the breakthrough.
To make a Price Projection, double click anywhere on a high bar and then double click anywhere on a low
bar, and then click on the Fibonacci Retracement icon. The first bar you double click determines which bar
the projection is made from. In the Graph Defaults under Retracements, the default choice is close (of the
bar) and the option is high/low (high or low of the bar). Selecting high/low means that your projections will
be made from the high of the high bar or low of the low bar, versus the close of those respective bars.
Thus, selecting high/low will give slightly bigger price projections. The actual price projection is seen on the
graph as a red horizontal line and blue price number at the price target. The blue price number may be
clicked on and dragged anywhere on the chart.
Regression Channels
Regression Channels are not actually price projections but indications of support and resistance. This is a
standard technical tool based on a least squares method that places a line through the middle of the price
bars and a high and low envelope above and below the middle line, framing an advance or decline; the
channel projects several bars forward so you have a glimpse of the possible trend in the future, and support
and resistance levels based on these channel lines.
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