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.
To load the Pi Phi Bands indicator into a chart:
•Select the Analysis option off the main menu, then select the Studies option from the drop-down menu.
•Click on the Add Custom Study button in the Chart Studies dialog.
•Select Pi Phi Bands from the list of available studies under the Harmonic Pattern Collection section in the Add Study dialog.
•Click on the Add button and the selected study will be added into the Studies to Graph section of the Chart Studies dialog.
•Click on the Settings button if you wish to adjust the settings, otherwise click on the Ok button and the indicator will be added to your chart.
•If you do select the Settings option, click on the Subgraphs tab in the Study Settings dialog to access the cosmetic parameters.
