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The Fib Grid

Here is my master chart which has evolved out of my "Ratchet" concept I have mentioned on the day trading threads. With these levels you will never again need to measure moves, run fibs or dare I say possibly even draw market profile numbers on your charts. Ok, perhaps that is all a bit extreme but these levels will never change and work great on the stock index markets.

I've notice over a great many years that the market respects certain levels of prices. The basic ones are the numbers ending in "00", "50" and "75". What I have done is add in some key numbers that Lewis Borsellino used. These where the percentage retracement numbers of 12.50, 25 ,33, 50, 66, 75 and 88 percent numbers but in one interview ( I'll be damned if I can find it) he implied additional uses of the numbers. Sorry Jim Kane and Roofer but Lewis was the first one to make the 88% numbers available to me. Perhaps he stole it from you back in 1996!

For me the additional twist comes when you add in fib numbers....not the actually levels....this requires no measuring or deciding where to snap fib lines. We are only concerned with the fib numbers themselves. The missing ingredient comes with use the 6.25 point ratchets to fill in the gaps in the missing areas. We are basically having a key number at every 6.25 points with a few exceptions and greater emphasis in the confluence zones.

As usual the entries will come down to an understanding of price action and/or order flow. Closes on the 15 minute time frame after 10 a.m. Eastern time shows promise but I don't "do" system trades. Lets put the numbers down here first before we look at a few charts.

00 - the basis of it all and key rat

06.25 Ratchet number

12.50 - 1/8th

18.75 -rat

23.5 - Fib number
25 - key Rat 1/4

33 - 1/3

38 -Fib

43.75 - rat

50 fib - not officially - 1/2 key level not labelled on my chart

56.25 -Rat

62- fib
66- 2/3

70 -Fib

75-key rat 3/4
78 -fib




There they are. All the numbers you will ever need for the ES. It doesn't matter if we are at 1200 or 100 in the S&P we just use the last few we could be using 138 or 1238 for example of the 38 snapping lines required.

Are these perfect? No,but what method or level actually is ? Numbers will hit over time..all numbers and all levels...posting numbers is the easy part but it does help others in being able to spot areas to potentially take trades from. These levels are best used in conjunction with your current methods. I use them with the market profile and the low volume numbers.

Here is a chart from the last week. You will notice how the clusters of numbers work very well at pointing out tops and bottoms. Those clusters are the 62 - 66 zone, the 23.50 - 25 zone and the 75 - 78 zone.

Click image for original size
fib grid one
Roofer my responses are in bold below:

bruce - great work. but i see no connection to my work and am puzzled that you chose to take a swipe at me...many of the numbers i use were first shown to by tom demark in 83 when he ran futures forcast... does that take precedent over you seeing them in borsolino's work in 98?

Why would I take your reality and make it mine ? That makes no sense. I prefer to give credit to the origins as they were exposed to me. Since Jim or Demark didn't show me that stuff then it wouldn't take precedence to me. Don't expect me to give credit to your influences as they aren't mine. Not sure why you think that is a swipe and once again you seem to be using this as a Jim Kane commercial so I will rant below.

if you have issues with jim kane .. then have issues with jim kane.

i will repeat what i have said endless time...before i knew jim, i did not know theIMPORTANCE of the .886... jim's pound the table insistence that the .886 was THE MOST IMPORTANT FIB NUMBER drove me nuts.... I SET OUT TO PROVE HIM WRONG.... instead i found that the big traders and computers were trading an algo based on the .886 to signal their intent.886gap5@geo... i take no credit for creating anything except the written work to report to my fellow traders the algo... in posting the slate pile, i asked that no one in the private kane forum say anything... let it stand alone...i believe that previous to my written work, there is no work showing the .886gap5@geo in the literature of technical analysis... if you can show it to me,i will be contrite...

i think we succeed as traders because we focus on a method, not because A method is the best. all day long this past friday the computers and big traders relentlessly carpet bombed the market using the .886gap5@geo... in my records it will go down as one of the great days...but if you were totally focused on the snp. what the computers were doing was invisible. and is as it should be FOCUS.your work is awesome... but i am equally struck with awe in watching jim call the turns day after day in his forum. at times jim and i are deeply at odds based on the tools but we don't make it personal.i see little point in criticizing another way to advance one's own.

The challenge is that we have a public and private forum for Jim Kane here on mypivots. I have yet to ever see either you or Jim call any turn in the market ever. Lord knows I have asked many times. Are we suppose to pay thousands of dollars just to POSSIBLY see a market turn called and make Jim Kane wealthy in the process by buying his products? I am not a member of his private room. We have members who take trades in the ES threads as they unfold and don't charge money for that! Jim knows he told me he was planning to post in the public rooms last March but that hasn't happened so lets not go down that path again. Perhaps it's there and I missed it but I'm starting to feel I've been bamboozled.

You are missing the point of this thread. I am not looking to advance any method of mine or anyone elses. I am making the point that the market will hit on the grid numbers just as often as any fib method or advanced method we could be suckered into buying. I recently challenged the fib players but all they could do was post lines that may or may not hit. There comes a point when snapping all these lines is foolish in my opinion so I am taking a "swipe" at everyone! Make sure you are clear on that! This would include Market profile lines too.

I even went back to your charts and all your points line up with grid numbers. Do I really care what method someone uses ? No I don't but I do care about people being convinced that they need to spend thousands of dollars of hard earned money to learn some "secrets" to trading.

Sorry this is a bit off topic but was wondering if anyone is using X-Trader DOM? If so do you know how to display 10 levels of depth vs the standard 5? Thanks