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36
Chart 10 (below) demonstrates the use of the two Techsignal™ Price Projection tools, Price Projection
and Fibonacci Retracement. Three years of data are displayed for easier viewing. Each Price
Projection tool has an icon on the right toolbar. It is important to remember that you must double click on
both a high and a low price bar on the price plot, before you click on the Price Projection icon. Clicking
anywhere on a price bar is adequate.
The Fibonacci Retracement tool has a default value found through the Graph Defaults button, on the left
of that dialog box in the Retracement frame. The choices determine from where on the bar a price
projection begins; the choices are the default value Close and High/Low (the obvious high or low end of
the bar). Bigger projections occur when you select High/Low.
With each Price Projection tool you first determine the direction you want Techsignal™ to project prices
(which end of a swing you double click first), set your inputs (answer prompts), and the tools make the
projections. These tools are independent of the cyclic analysis; so it makes no difference whether you
have cycles displayed or not in using these tools.
In the example below, the Price Projection tool used 23 periods as the prompted input since that was
one of the higher scoring cycles in the Bartel’s test. See the Analysis Grid on the left below the price
plot, and the third best Bartel’s test scoring cycle was one with a period of 23.25 weeks.
23 periods is outside the recommended range of 12 to 18 periods to use with the Price Projection Tool.
Selecting 13 periods for instance would have generated a smaller price target of 1229 instead of 1164
because the Projection tool incorporates rate of price change analysis over the entire data series and
you have asked Techsignal™ to project a price target to occur over only 13 periods versus 23 periods.
There is more information you can gain here. If the market were to move down as the chart analysis
suggests, and understanding that often markets move in waves up and down, the first wave down might
end somewhere close to 1229 and the next swing down somewhere close to 1164. This difference in
price projections demonstrates the importance of your picking a cycle period which incorporates the
swing period or time frame you are interested in as a trader or longer term investor.
Chart 10
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