Fibonacci-based indicators & Trading Logic Introduction
Learning the basics of the indicators and the trading of Nexgen's Fibonacci areas
25 years ago, Nexgen's Fibonacci trading method was automated to be the most powerful, dynamic, and accurate Fibonacci-based indicator package. Today, Nexgen's Fibonacci algorithms and trading methods are time-tested and remain accurate in every market condition.
view full screen - Nexgen Software Services Fibonacci-based indicator introduction
view full screen- How to accurately read Nexgen Fibonacci areas for high probability trades
Entry and Exit Management Video

Nexgen's Fibonacci Engine- accurate, dynamic and powerful

Fibonacci confluence areas will be represented by the red and blue lines on the chart. The Fibonacci analysis is done automatically on 10,000 + data points by the T3 ProTrader to give you the most powerful, dynamic, and accurate Fibonacci indicator ever developed.
Click to Enlarge- Nexgen Software Servcies Fibonacci Support and Resistance Indicators

Fibonacci One to One's

Fibonacci 100% alternate projections. AKA one to one's: 1:1's or YELLOW DOTS are also very helpful at defining entry and exit points on each of the charts. These are generated automatically by the program, and the market will respect these levels. See the basics for a one-to-one.
click to enlarge- Nexgen Software Services One-to-One Fibonacci Projections
One to One ( YELLOW DOTS)

Moving Average -Mid-band support and resistance

The Mid Band is a Fibonacci-based (55) period exponential moving average as a potential entry or exit area. In conjunction with Nexgen's Fibonacci areas and one-to-ones, the mid-band will also act as an entry and exit target. The three main "areas" to look for entries with the trend will be Fibonacci, mid-band, and one-to-ones. The picture below displays each of the three.
click to enlarge- Fibonacci Support and Resistance, Mid-Bands and One-to-Ones by Nexgen Software Services

Nexgen's T3 Trigger lines

T3 Trigger lines use a moving average linear regression calculation and determine trend, momentum, and when Fibonacci levels will hold or break. The trigger lines are also responsible for changing the background color on the chart from red to green. To be successful, you must properly use the Fibonacci and Trigger lines. Here are the 3 terms you will use with triggers.
Small triggers = 20-period indicator that shows the short-term trend and direction.
Synthetic Trigger = (any-period) trigger line derived from another chart. The 5-1 chart is the only chart you will see using a synthetic 8-range large trigger.
Large Triggers = 38-period indicator that shows the long-term trend and direction.
click to enlarge- Nexgen Software Services 5-1 Dynamic Renko chart Trigger Lines, small, large and synthetic

Nexgen's T3 Divergence

Divergence shows the deviation between two items. Nexgen uses price swings and a MACD indicator to compare highs and lows. The Fibonacci analysis compares the two swings, and when there is a "Fibonacci retracement divergence," the indicator will plot divergence on the charts.
The divergence indicator will plot negative #’s when a divergence is true. Remember that the size of the divergence number does not matter. Think of divergence as a true-false indicator. When divergence is true at the high, the indicator will plot a magenta line and a negative number from that high. When divergence is true at the low, the indicator will plot a cyan line and a negative number from that low.
Divergence is used extensively for entry and exit management as well as defining termination conditions. You will learn more about this in the entry and exit sections of the educational material.
Divergence is measured between price and macd swings
click to enlarge- Nexgen Software Services Fiboancci-based Divergences