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The DowHow Fibo pack is a complete trading approach. It is used by the German trader and trading coach, Markus Gabel. DowHow Fibo is based on four pillars: Charles H. Dow’s famous Dow Theory (Dow), Markus Gabel’s knowhow (How), Fibonacci’s numbers sequence (Fibo) and reversal chart patterns as entry signals.
The module identifies each trend, the different stages of each trend (market phases) and indicates all the price levels and chart patterns which are relevant to open and manage a position. In short, the DowHow Fibo pack is very complete. As a matter of fact, it is an overall state-of-the-art solution for professional chart analysis based on the principles of Charles Dow.
DowHow Fibo trading has numerous advantages:
The pack can be used in both NanoTrader Free and NanoTrader Full.
This example shows the automated trend lines. The green colour indicates that the market is in an uptrend. The red colour indicates that the market is in a downtrend. The numbers (1,2,3) indicate the phases of the trend. The number in brackets is the market price when the point was identified.
The Dow Theory is often considered as the foundation of modern technical analysis and was derived from 255 Wall Street Journal articles written by Charles H. Dow (1851-1902) founder and first editor of the journal and co-founder of Dow Jones and company.
The Dow Theory says that there are different types of market trends and that by examining and identifying these different trends, investors can find opportunities. The module can identify these different trends.
On top of the automated trend recognition Markus Gabel has included another very popular and well-known trading concept into his tool: Fibonacci level.
This example shows the automated trend lines and the Fibonacci retracement level on the right side of the chart which are also automatically calculated.
Since the Dow Theory is often said to look for the nature of the underlying market, it was logical for the author to stay with nature for the choice of other components as well. The Fibonacci sequence is one of the most famous formulas in mathematics and often regarded as “nature’s universal rule”. The final nature component is Markus Gabel’s knowhow. Believe it or not, even traders are natural creatures.
The entry signals are provided by reversal bars such as Hammer, Doji and Shooting Star. The DowHow Fibo pack automatically detects such patterns. They are indicated by a yellow background in the chart.
These two examples show the signals based on reversal bars.
Note: This tool is designed for
live trading. Due to the complex calculation of both entry and
exit signals, backtesting displays different signals and can
therefore only be used to a very limited extend.
This video gives a good impression of the DowHow Fibo pack’s possibilities. Users are also strongly encouraged to inform themselves about this trading approach on the website of its creator, Markus Gabel, who also offers training and coaching.