Coast Investment Software Inc.
- 40 years market trading experience, CTA for over 20 years
- "Trading with DiNapoli Levels" was translated into 9 languages
- Author, Trading with DiNapoli Levels
Joe DiNapoli has 40 years of market trading experience and has been a registered CTA for over 20 years. The creator of the proprietary "Oscillator Predictor," he is highly regarded for his knowledge of displaced moving averages and for his practical and unique method of applying Fibonacci ratios to the price axis. He is widely respected as a researcher, author, and lecturer, and has taught his techniques to traders around the world. Mr. DiNapoli continues to develop and refine his trading approaches as president of Coast Investment Software, Inc. He has contributed to a wide variety of books and financial publications. Mr. DiNapoli's most recent book, Trading with DiNapoli Levels, has become the industry standard for the application of advanced Fibonacci techniques.
Another consideration is the type of brokerage operation that may be available to him. The influential connections that a larger trader is able to cultivate may not be feasible for the smaller trader. We all know a one lot in the S&P is treated differently from a ten or a fifty lot. It may be particularly attractive to a one or two lot trader to have price orders in the market at predetermined levels prior to the market getting there. He avoids the necessity for handpicked filling brokers doing his "bidding." In between the 50,000 and five million dollar account there's a lot of elbow room. Where you fit in can be dictated by many factors.
Typically, I look for my lagging indicator or coincident indicators on a higher time frame. Then I combine that indicator with my leading indicators on a lower time frame. For example, let's say a daily pattern that I use as a setup to go long has just occurred. I'll look at an hourly (or less) chart to calculate the precise entry and stop placement points. Depending upon the nature of the lagging indicator that provided the context for the trade, I determine the strength of the market. I will then use pre calculated profit objectives on either the hourly or the daily chart as my exit point. The approach works equally well using a half-hour chart as a setup and dropping to a five minute chart for your leading indicator analysis. If you're a monthly-based mutual fund trader you can consult daily analysis to determine your entry, exit, and profit objectives.
If you are using high quality leading indicators, the advantages of this type of trading are substantial. You can achieve an extremely high percentage of winning trades. In addition, your orders will be filled with a minimum of slippage, because you are buying a dip when the market is coming at you and you're selling a rally when the market is advancing. If you're trading size, this can be a huge advantage as compared with initiating a trade with buy stops or sell stops. If you're trading a two lot, this approach can be significantly beneficial on your execution as well, but more on that later.
In my trading career I have found only two leading indicators that have the reliability necessary to justify employing them. The first is the oscillator predictor, a study I created in the early eighties. It is a derivative of a de-trended oscillator. It tells me a day ahead of time where the market will find support or resistance.
DiNapoli Levels: The Practical Application of Fibonacci Analysis to Investment Markets
DiNapoli Levels, entirely the 3rd printing, with updated charts, tables and text. This work is the most comprehensive book ever published on the practical application of Fibonacci Analysis to the Price Axis, DiNapoli style.
D-Levels Financial Forecast
Pieter van Wyk (author of D-Levels Financial Forecast™ and an expert in DiNapoli methodologies) employs Joe's advanced trading tactics on Futures FOREX and Stocks each week to define trends and project key Support and Resistance Levels well in advance of markets action.Learn More