MS123 Drawing Tools
Modified on 2016/06/03 12:34 by Eugene — Categorized as: Misc
Description
MS123 Drawing Tools
is an extension containing group of various manual drawing tools that when installed will appear in Wealth-Lab's Drawing Toolbar.
The following drawing tools are currently included:
Gain Ruler
Fibonacci Extensions
Parallel Channel
Cubic Spline Curve
Change log
See here for the complete
change log
.
Open issues
None yet! Be the first to report an issue for bragging rights :)
Gain Ruler
Use the Gain Ruler to measure percentage change between 2 points. To use it, simply click, hold, and drag between the two points. If the span between the bars is more than 3 days, the annualized percentage rate is displayed as well.
Fibonacci Extensions
Fibonacci Extensions project fibonacci (or custom) ratios of the first wave onto an extension of a second pullback wave. For example, in Elliott Wave theory, it's common in an ABC correction for wave C to be equal in magnitude to wave A. Using Fib Extensions, you can easily project that value on the chart.
To use the tool, simply click and drag over the first wave and release. The greatest point of pullback in the second wave is found automatically and the extensions are drawn. Grab the handles of either wave to adjust their positions. Just as you do with the other fibonacci tools, right click the object and use the properties dialog too add or remove values.
Parallel Channel
Trending prices often move within a parellel channel. Knowing this, you can use drawn a support (or resistance) line between two points and project a potential target from the highest (or lowest) price in the trend.
Click and drag the support (resistance) line. When you release the mouse, the parallel and center lines will be drawn automatically. Use the handles of the first line to adjust the slope of the channel. Adjust the width of the channel (if required) using the handles of the parallel line.
Note!
The channel works for both linear and log charts, although a parallel channel drawn on a linear chart is unlikely to be parallel on a log chart, and vice-versa. This is by mathematical design.
Monotonic Cubic Spline Curve
This drawing tool is an implementation of
monotonic cubic interpolation
. The cubic spline curve is made of a fixed 4 "splines" between 5 drawing handles.
Initialize a curve by clicking and dragging across the approximate area for the curve and then grab the handles one by one to adjust the curve until it's a visually pleasing curve that provides price support or resistance. You can move the handles in any direction, but they can't cross an adjacent handle horizontally. The calculation constrains each segment to be rising or falling monotonically, i.e., an individual segment will have only a positive or negative slope.
You can extend either or both ends of the curve, however, the resulting curve is based on a straight line projection from the two most-adjacents handles.
Note: Often when price movement starts to look exponential, it's a good time to switch to a semi-log chart view for a better perspective of percentage changes.