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 the Market Analyzer. |
To load the Pi Phi Bands into a chart:
•Right-click in your chart and select the Indicators option from the pop-up menu.
Chart Menu
•The Indicators dialog will be displayed. Scroll down the list under the Available column until you find the hpc indicators.
Indicators Dialog
•Double-click on the hpcPiPhiBandsIndicator in that list and it will be added into the Configured section of the dialog. You can now adjust any parameters in the Properties section. Click on the OK button when done and the indicator will be loaded into your chart.
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