WIXLIB

The Candlestick X-Ray also includes a special pre-formatted “RadarScreen”Indicator and template for all TradeStation users. All of the columns, colors, andtext are completely customizable so that you can personalize it to your ownpreferences. Using the Candlestick X-Ray with the RadarScreen allows you toquickly scan an entire list of symbols for all candlestick patterns in just seconds! 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.13

The Candlestick X-Ray also includes a special pre-formatted “Market Scanner”Indicator and template for all MultiCharts users. All of the columns, colors, and textare completely customizable so that you can personalize it to your ownpreferences. Using the Candlestick X-Ray with the Market Scanner allows youto quickly scan an entire list of symbols for all candlestick patterns in just seconds! 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.14

We have found that scanning intraday for our favorite patterns can be quite usefulas an “early warning” detection system, since the Candlestick X-Ray Scannercan display valid daily patterns before the trading day has ended. In other words,you can see which stocks exhibit valid pattern setups at 12 PM (EST) rather thanhaving to wait for the close at the end of the trading day.*** While this screening technique allows for aggressive pre-emptive strategies,always exercise extreme caution when doing so because a pattern that appearsvalid at 12 PM (EST) may prove to be invalid at 4 PM on close.We prefer using the Candlestick X-Ray Scanner to keep an eye on whichpatterns are developing within a specific group of key issues at around 10:30 –10:45 am, 2:15 – 2:30 pm and once again at 3:35 – 3:50 pm (EST). 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.15

To avoid excessive chart clutter and unnecessary signals when analyzing smallintraday timeframes that are below 5 minute or 15 minute intervals, werecommended eliminating patterns that can occur too frequently, such as: Bullish & Bearish Engulfing; Bullish & Bearish Marubozu; Three Inside Up, Three Inside Down; Three Outside Up, Three Outside Down; Three White Soldiers / Three Black Crows; Matching High / Matching Low; Tweezer Top / Tweezer Bottom; 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.16

Abandoned Baby, Morning Doji Star & Evening Doji Star- High probability reversal patterns with expanding volatility and explosive priceactionAdvance Block, Descent Block, Deliberation- These patterns often coincide with significantly overbought / oversold conditions,signaling that trend momentum is markedly waningHigh Wave- These patterns often coincide with significant turning points in market character,reflecting drastic changes in price action (e.g. March 6th, 2009)Homing Pigeon & Descending Hawk- Provide extraordinary risk / reward ratiosPiercing Line, Dark Cloud Cover, Thrusting- High probability reversal patterns 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.17

- Wait for price to revert to the support/resistance established where the patternoccurred and enter there for a greater risk/reward ratio. If price fails to revert,leaving you with a missed trade, OH WELL!There is no harm and no foul in missing a trade when it fails to meet your riskcontrol parameters, regardless of how it plays out.By exercising technicaldiscipline and emotional patience with your candlestick pattern trading, you cansignificantly increase both your success rate and risk/reward ratio. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.18

- It’s a general rule that candlestick patterns which occur on increased volumeexhibit greater probabilities for follow-through. If a valid pattern setup looks goodbut volume is either suspiciously lacking or utterly unconvincing, prudencewarrants exercising caution. This simple, straightforward tip can greatly enhanceyour candlestick analysis. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.19

- Pay more attention to “dojis” which occur after prolonged or extended rallies(possible tops) rather than those occurring after extensive sell-offs (possiblebottoms). While it is fundamentally correct that “going up” simply requires greatercumulative buying than selling, we have observed that doji signals exhibit muchgreater probabilistic predictive power and hence effective value for traders whenthey follow exhaustive rallies. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.20

- You can project effective price targets and stop loss levels when employingmany candlestick patterns. Placing your stop either just underneath the low orhigh of the respective pattern (depending on bullish or bearish character) is asimple, straightforward way to effectively manage risk and minimize time decay.For your price target, adding or subtracting the pattern’s High-Low range to the topor bottom of the breakout level is another simple and straightforward way tocalculate a realistically achievable price target. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.21

All “doji-based” as well as “matching high or low” patterns that require an equalopen, high, low and/or close are simply impossible to code for both “high-priced”and “low-priced” issues when utilizing formulas which require precision; thisprevents many candlestick patterns from registering valid signals on “high-priced”stocks, “penny” stocks, bonds, futures, or options.We believe that our coding has solved this problem by requiring the definition of a“doji” and a “matching high or low” to have a real body (Open - Close) that is lessthan approximately 13% of the current bar’s trading range (High-Low). This allowsfor “high-priced” stocks (e.g. several hundred dollars) such as GOOG or PCLN toexhibit effective signals for these patterns in situations where “simple” coding fallsshort. We have also provided many of the original patterns, in addition to ourcustom modified patterns.*** Patterns with an “ ” after them are the “textbook” codes that requireexact Opens / Closes / Highs / Lows. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.22

GOOG opens at 400.50 and closes at 400.00, where the Low is 397.00 and theHigh is 405.00.“Simple” Coding: fails to classify as a “Doji” day; no pattern is registered.Fibozachi Coding: recognizes that the 50-cent real body is only 6.25% of theHigh-Low range, thereby correctly registering as a “Doji” day.FNM opens at 1.10 and closes at 1.09, where the Low is 1.00 and the High is1.20.“Simple” Coding: fails to classify as a “Doji” day; no pattern is registered.Fibozachi Coding: recognizes that the 1-cent real body is only 5% of the HighLow range, thereby correctly registering as a “Doji” day. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.23

Many other candlestick pattern tools on the market have fundamentalmisconceptions about candlestick patterns and incorrect formulas of certainpatterns; as a result, they plot invalid patterns and often miss the good ones.As systematic candlestick traders, we find such programming errors utterlyunacceptable. We have painstakingly proofed every one of the 156,335 characterswithin each of the 4,445 specific lines of code that comprise the Candlestick XRay Package and take great pride in the quality of our work.Understanding the inherent price action within specific patterns adds a criticalcomponent to one’s knowledge of candlesticks. Employing such nificantlyenhancetheeffectiveness of their predictive value.“Simple” Coding: incorrectly plots the hammer, inverted hammer, hanging manand shooting star, due to the lack of an added rule requiring that an uptrend ordowntrend MUST be present. (Hammers that register after a selloff is much morevaluable than a hammer that registers during a rally).Fibozachi Coding: includes an added rule, where the midpoint of the current barmust also be above or below the 8-day SMA, which confirms the presence of anuptrend / downtrend. This helps to properly validate candlestick pattern signals. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.24

We have devised each formula within our candlestick patterns in a comprehensivefashion. Since many candlestick patterns and their respective formulas are neitherqualitatively defined nor uniformly agreed upon by the several seminal authors ofcandlestick literature, we have both manually and mathematically assessed thevarious interpretations to determine the formula and rules behind each pattern.Additionally, we have incorporated Fibonacci numbers and their derivative ratiosinto the vast majority of our uniquely coded candlestick pattern formulas, resultingin the creation of multifaceted and extremely powerful candlestick patternIndicators.The following is a prime example of our initial frustration during the earlystages of the developmental process:Author “X” states that a hammer’s lower shadow must be at least 2 times thelength of its real body, where author “Y” states that a hammer’s lower shadowmust be at least 3 times the length of its real body. If we follow the guideline of Author “X” we catch all signals, though they maybe probabilistically weaker than those of Author “Y”. If we follow the guideline of Author “Y” we may miss some signals, thoughthey may be probabilistically greater than those of Author “X”. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.25

Rather than relying on amorphous guidelines, our rule states that a hammer’slower shadow must be at least 2.236 times the length of its real body. We alsodefine that the Upper Shadow * 7.618 High-Low Range; in other words, theupper shadow must be less than 13.13% of the bar’s entire range for the hammerpattern to verifiably confirm itself, thereby forming a valid signal.*** Our “Standard” Doji, Hammer, Inverted Hammer, Hanging Man, and ShootingStar Patterns employ the “13% Rule”, where Open - Close 13% of the Range.We have also included “Perfect Pattern” versions (for classic candlestick patterntraders), wherever applicable, which employ a “3% Rule” in order to isolate onlythe strongest, most “textbook” patterns that the market has to offer. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.26

Have a question about the Candlestick X-Ray Indicator Package? Contactus at support@fibozachi.com. We take great pride in our customer supportand are happy to help our fellow traders! 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.27

The terms “Company”, “us” or “we” refer to Fibozachi.com, its parent company Fibozachi LLC, and allsubsidiaries, affiliates, officers or employees therein. The term “you” refers to the user or customer ofFibozachi.com. The terms “Content” and “Information” refer to the indicators, tools, strategies,techniques, systems, manuals, data, communications and any other associated products or material ofthe Company.License:You are purchasing a single user license. You may not: copy, modify, publish, retransmit, participate inthe transfer or sale of, distribute, perform, display, or create derivative works from, any of the Content orInformation in any way.Disclaimer:All Content and Information provided is for educational purposes only. Fibozachi.com and Fibozachi LLC(the “Company”) is not an investment advisory service, broker-dealer, commodity trading advisor, legaladvisor, tax advisor, or registered investment advisor, and does not purport to tell or suggest whichcommodities, currencies or securities customers should buy or sell for themselves. The affiliates,employees or officers of the Company may hold positions in the commodities, currencies or securitiesdiscussed here.You understand and acknowledge that there is a high degree of risk involved in trading commodities,currencies or securities. You also understand and acknowledge that there is an extremely high degreeof risk involved in trading leveraged vehicles such as futures or options, where you can lose more thanthe initial sum of your investment. The Company, its subsidiaries, affiliates, officers and employeesassume no responsibility or liability for your trading or investment results.It should not be assumed that the indicators, tools, strategies, techniques, systems, manuals, data,communications or any other associated products and material of the Company, collectively the“Content” and “Information,” presented in its products or services will be profitable or that they will notresult in losses. Past results of any individual trader or trading system published by Company are notindicative of future returns by that trader or system, and are not indicative of future returns, which may ormay not be realized by you. In addition, the articles, blogs, chat, columns, indicators, methods,strategies, systems, techniques, tools, and all other features of Company's website (collectively, the“Information”) are provided for educational purposes only and should not be construed as investmentadvice. Any articles, blogs, chat, columns, comments, discussions, drawings, and examples, includingany other items intended to illustrate Information presented on Company's website, are for educationalpurposes only; such are not solicitations of any order to buy or sell. Accordingly, you should not relysolely on the Information in making any investment. Rather, you should use the Information only as astarting point for doing additional independent research in order to allow you to form your own opinionregarding any investment. You should always check with your licensed financial advisor and tax advisorto determine the suitability of any investment. 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.28

IN CONSIDERING WHETHER TO TRADE, YOU SHOULD BE AWARE OF THE FOLLOWING:HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENTLIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOTREPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHERSLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THERESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAINMARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS INGENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFITOF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELYTO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.TRADING IS AN EXTREMELY DIFFICULT PROBABILISTIC ENDEAVOR THAT REQUIRESTECHNICAL SKILL AND EMOTIONAL DISCIPLINE AT THE VERY MINIMUM. EVEN A GREATTRADER WITH EXCELLENT ANALYSIS, RESOURCES, TOOLS, TECHNIQUES, STRATEGIES,PLANS, CONTINGENCIES, AND EXPLICITLY DEFINED RULES FOR MANAGING RISK EXPOSUREIS OFTEN WRONG. THERE ALWAYS REMAIN REAL AND UNQUANTIFIABLE RISKS SUCH ASGOVERNMENT INTERVENTION OF RULE / LAW CHANGES. RISK PREVENTION MEASURES SUCHAS PROTECTIVE STOPS DO NOT PREVENT THE RISK OF GAP OPENINGS OR LOCK-LIMITMOVES.YOU AGREE THAT NEITHER FIBOZACHI LLC, NOR ITS SUBSIDIARIES, AFFILIATES, OFFICERSOR EMPLOYEES, SHALL BE LIABLE TO YOU OR ANY OTHER THIRD PARTY FOR ANY DIRECT,INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES. MEMBERS AND VISITORS(“USERS”) AGREE TO INDEMNIFY AND HOLD FIBOZACHI LLC, AND ITS SUBSIDIARIES,AFFILIATES, OFFICERS AND EMPLOYEES, HARMLESS FROM ANY CLAIM OR DEMAND,INCLUDING REASONABLE ATTORNEYS’ FEES, MADE BY ANY THIRD PARTY DUE TO ORARISING OUT OF A USER’S USE OF FIBOZACHI LLC’S WEBSITE.TradeStation Disclaimer:“Neither TradeStation Technologies nor any of its affiliates has reviewed, certified, endorsed, approved,disapproved or recommended, and neither does or will review, certify, endorse, approve, disapprove orrecommend, any trading software tool that is designed to be compatible with the TradeStation OpenPlatform.” 2009-2020 Fibozachi LLC – www.fibozachi.com. All Rights Reserved.29

- Our 92 candlestick patterns is significantly more than ANY other candlestick-related Indicators or software - nothing else even comes close. - Our strictly coded, Fibonacci-based formulas filter out low-quality patterns. This ensures that only the strongest candlestick patterns are detected - avoiding weak, unreliable and "border-line .