Fibonacci Retracement / Expansion are well-known famous Break Out system in Stock Market and Forex Market as well. The idea of Layers Break Out System is also using Fibonacci numbers, and it’s unique concept of “Layers Structure” will be emerged by calculating original formula. Another uniqueness is that Layers Break Structure is always including two of “SWEET_BAND” between Peak high and Peak low under given period.
Given period : It might be hourly, daily, weekly, monthly, or, any kind of appropriate period.
1H,4H,Daily,Weekly,Monthly Sweet Band are available at this moment. (Dated Jun 2009)
As you see the concept of Layers Structure in right chart,each of layers has same range and will be
extended to upper side and down side unlimitedly until a peak high and peak low will be updated in regular basis.
You will see a rate would be trapped by these each of Layers Break line quite accurately, so you are able to make your position easily considering where is the best point to enter, exit and stop out.
What’s the meaning of Break out ?
As many of trader will use common major technique such as Moving Average, Bollinger Band, MACD, and so on, many of open position should be reserved in particular points, so a movement of market rate will be blocked at a point where many trader are making a position.
What’s the meaning of Sweet Band ?
Sweet Band will be a “Singularity” zone where an open position would be relatively rare, so a rate will be able to move quite easily.
Sweet Band has an upper and lower line that works as a quite strong break out, so that
a rate will be trapped and staying for a while in this special zone area before a rate will break out upwardly or downwardly.
Anyhow, when you are able to make friends with Sweet Band, your trade becomes very profitable against another trader