Ratchets and Splits

Ratchets (also misspelled rachets) are fixed prices around which the Emini S&P500 (ES) is said to pivot based on the last 2 whole numbers of the price. The last 2 whole numbers of the ES at their extremes are 00 and 100. Using these as starting points we split them 4 times to get all of our ratchet levels at 6.25 points apart.

00.00
		06.25
	12.50
		18.75
25.00
		31.25
	37.50
		43.75
50.00
		56.25
	62.50
		68.75
75.00
		81.25
	87.50
		93.75
100.00

```If the ES is trading at 1180 then the next ratchet level above it will be 1181.25 and the first one below it will be 1175.00.

If you want to investigate this topic further there's a discussion about it here: [The Fib Grid](http://www.mypivots.com/board/topic/7088/-1/the-fib-grid)