Advanced GET - Applying TJ's Web Study
The TJ's Web is a proprietary study developed by Tom Joseph. TJ's Web is a display of resistance and support zones calculated using a proprietary Fibonacci formula. There are three areas displayed: Neutral Zone (NU, ND), Resistance Area (RA, RB, RC, RD), and Support Area (SA, SB, SC, SD).
neutral zone: this zone is usually narrow and is a few points above and below the previous bars’s close. when the prices trade above the neutral zone, the price action is considered to be strong, and vice-versa.
resistance area: above the neutral zone, there are four resistance levels called ra, rb, rc, and rd. these are fibonacci resistance levels based on the previous bar's actions.
support area: below the neutral zone, there are four support levels called sa, sb, sc, and sd. these are fibonacci support levels based on the previous bar’s actions.
tj's web is an excellent way to get the support and resistance areas for the trading range of the next bar. as a general rule, the market pauses at each level, and if the market goes to support area a (sa) it will move to resistance area a (ra). the same is true for all of the support and resistance area combinations.
please note that tj's web is calculated using the range of the second to last bar on the current bar chart. for example, if you want to see the web levels calculated using the daily values displayed on a 60 minute chart, you must first open a daily chart, apply the tj's webs, and switch the time frame on the chart to be a 60 minute chart. by doing this, the web levels that were calculated using the second to last daily bar will be displayed on the 60 minute chart. if you simply put up a 60 minute chart and apply the tj's web levels, you will see the web levels that were calculated using the second to last 60 minute bar.
applying tj's web to a chart:
to apply the trade profile study on a chart, right-click on the chart. when the menu appears, place your cursor on advanced get studies, and then select get: tj's web. a dialog box will appear:
click ok to accept the default settings or if you wish change the settings:
the color selection list allows you to change the color of the tj's web.
The Mode selection list allows you to choose from 4 types of TJ's Webs:
The Automatic setting allows GET to determine what separation factor to use to calculate the TJ's Web level. (The recommeded setting).
The Reduced setting is used when the market is expected to be trading in a smaller, tight range.
The Normal setting is used when the market is expected to behave in an average trading range.
The Extended setting is used when a large amount of volatility is expected for the next trading day.
The Show Price Levels check box , when checked, will display the price of each Resistance and Support level.