The DiNapoli studies are leading indicators designed to produce high accuracy entry, exit, and stop placement price points.
Due to the derivation of these points, many are not commonly known or used by traders. CQG has provided a platform that allows for a fully automated presentation of these studies in a particularly user-friendly interface.
CQG provides all the necessary studies in its non-proprietary technical arsenal to employ properly the recommended context without the necessity of creating additional complicated formulas. The experienced trader who is comfortable with his own directional techniques can use the DiNapoli group of studies to sharpen entry and exit points.
Leading indicators show a trader where support and resistance is likely to manifest before the market gets there. The trader, using these studies, typically will buy dips in an advancing market or sell rallies in a declining market. He also will employ pre-calculated Profit Objectives and stop placement points.
While these levels are all generated from the studies, the developer recommends that they be used in an appropriate manner and in an appropriate context.
The complete use and implementation of these studies is shown in Trading with DiNapoli Levels: The Practical Application of Fibonacci Ratios to Investment Markets available through Coast Investment Software on their Web site www.fibtrader.com or by calling (941) 346-3801.
DiNapoli Retracement, DiNapoli Expansion, DiNapoli Oscillator Predictor, and D-Level are trademarks of Coast Investment Software, Inc.
Considerations Using D-Level Retracement and Expansion Studies
The biggest technical challenges in applying D-level analysis to market trading situations has been twofold:
•Staying organized and keeping up with current market action.
•A clear and useful presentation of the pertinent data as market action unfolds.
On time frame charts above 30 minutes these issues are not as challenging as they are on charts below 30 minutes. CQG programming efforts have gone a long way towards solving both issues. At this writing, CQG offers the best solutions available, including our own software package FibNodes™.
In an effort to help you to achieve the maximum benefit from these studies, hints are suggested below. These hints are in no way designed to teach you how to apply these studies to market action, rather to help you make the most of the CQG software as it is designed at this writing, pertaining to D-level studies.
Hints from Joe DiNapoli:
•For clarity, I suggest as a minimum a 17-inch monitor, flat screen with a dot pitch of .26 or less.
•The bars need to be dimmed so that you can see the FibNodes, which due to programming issues, are sometimes written over the chart itself. I have chosen a dark gray color for the bar chart.
•Strong, clear, colors should be chosen as defaults for the FibNodes, again for clarity. I use red for the .382 Node and purple for the .618 Node.
•Another benefit follows, namely: different colored Nodes in close proximity easily identify Confluence.
•I suggest a bold font, 10 points or larger. If you are using the studies on stocks, you will need to choose CQG Small or CQG Swiss, because those fonts are the only fonts supporting fractional conversions (1/8, etc.). You also have the option of thickening the line, representing the FibNode location. I suggest .025.
•Use different pages for different time frames so that you can keep organized. At any given time I am likely to have several pages of D-Level studies for each instrument I follow.
•I might use daily and weekly files for items I am trading long-term. But for intra-day trading the S&P, the power and utility of the software allow you to have 60-minute Nodes (FibNodes), 30-minute Nodes, as well as 5-minute Nodes. It all depends on the time frame you chose to trade.
•If Nodes become cluttered, use the horizontal stretch button to open things up, so that you can keep the picture clear. The software is written so it does not overwrite the value of one Node on top of another. Therefore, if Nodes are close and the chart is not stretched horizontally, you may loose pertinent information.
•Be sure real time is checked so that your Nodes will automatically update and reflect current market action.
•Although program defaults have been set by CQG to reflect the above suggestions, it may be best to check them