The method was developed by Nick Stott who was a very successful bond trader.
What makes it better is the use of Fibonacci numbers in calculation of levels.
equations are used to calculate intraday levels using
the previous days spread. equations take previous day’s high, low and
close as input and generates 8 levels of intraday based on .
There are 4 levels above and 4 levels below . The most important levels
are L3 L4 and H3 H4. H3 and L3 are the levels to go against the trend with stop loss around H4 or L4 .
While L4 and H4 are considered as breakout levels when these levels are breached its time to
trade with the trend.
- For purpose educate only
- This script to change bars colors.