The Pi Phi Bands identify the “harmonic range” in which price is oscillating, creating a simple way to identify when price is trending into extreme territory. Although a touch of a band does not necessarily indicate exhaustion in price, it is a good place to start looking.
The most reliable signal we have found in Pi Phi Bands is to look for price to hug one band for an extended period of time and then to anticipate a quick reaction off of the opposing band when price finally connects with it. For instance, if price hugs the upper band for several days on the fifteen minute chart, we would look for price to react quickly when it finally touches down to the lower band. An extended return to an indecisive range in the middle of the bandwidth would negate this signal.
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Note: The Pi Phi Bands indicator can also be used in a watchlist. |
To load the Pi Phi Bands into a chart:
•Right-click in your chart and select the Insert Study option from the pop-up menu.
Chart Menu
•The Insert Study dialog will be displayed. Click on the Add-on Studies tab.
Insert Study dialog
•Then scroll down until you find the Harmonic Pattern Collection folder. Double-click on the folder to open it. Then click on the Pi_Phi_Bands.efs indicator to select it, click on the Apply button, and then click on the Close button to close the dialog.The indicator will now be loaded in your chart.
•Once the indicator has been loaded into a chart, you can access the parameters dialog by by right-clicking in the indicator pane of the chart and selecting the Edit Chart option from the pop-up menu. The parameters dialog (called Edit Chart) will be displayed:
•Make your edits/changes and then click on the Close button at the bottom-right of the dialog to close the parameters dialog and return to the chart. See the Settings section for a complete description of all of the available parameters.
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