Post on 12-Sep-2021
Trading Dow Jones EURO STOXX 50®Index Futures with Fibonacci
Retracement Techniques
1
Prepared and Presented by Daniel Gramza
Materials in this presentation are covered under current United States and
international copyright laws.
NO PORTION OF THIS PRESENTATION MAY BE REPRODUCED WITHOUT THE
WRITTEN PERMISSION OF THE AUTHOR.
Daniel Gramza is currently completing two books:
TRADING IN THE EYE OF THE STORM
THE HANDBOOK OF JAPANESE CANDLE TRADING STRATEGIES
2
THE HANDBOOK OF JAPANESE CANDLE TRADING STRATEGIES
You can be notified when these books are available by contacting Daniel Gramza.
Daniel M. Gramza
President
Gramza Capital Management, Inc.
DMGRAMZA@ATT.NET
Eurex Overview
Fibonacci Retracements
Concepts
Strengths
Weaknesses
Trading Applications
Q&A
AGENDA
3Gramza Capital Management, Inc.
Eurex Overview
Fibonacci Retracements
Concepts
Strengths
Weaknesses
Trading Applications
Q&A
AGENDA
4Gramza Capital Management, Inc.
Are the Eurex Equity Index Futures
Are you making the most effective use of your trading capital?
Have you diversified your investments beyond US corporate stocks?
Have you diversified your investments beyond the US?
Are you taking direct advantage of the European market movement?
Do you hedge or protect your portfolio from adverse price movement?
right for YOU?
5Gramza Capital Management, Inc.
Strong Growth in Contract Volume
1,0151,066
1,250
1,526
1,900
1,200
1,400
1,600
1,800
2,000Eurex – The European Derivatives Exchange | Products
+ 25 %comparedto Jan-Dec2006
6
26 50 70 87 100 117 145
248
381454
674
801
0
200
400
600
800
1,000
19911992 1993 19941995 1996 19971998 1999 20002001 2002 20032004 2005 20062007
Traded contracts (in millions)
• Benchmark equity index
• Tracks the development of the European economy
• Focus on the Euro zone countries that have adopted the Euro astheir currency
Austria, Belgium, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, the Netherlands,
Dow Jones Euro STOXX 50® - Underlying Index
7
Ireland, Italy, Luxembourg, the Netherlands,
Portugal and Spain
• Captures approximately 95% of the free float marketcapitalization of the represented countries
• Index of 50 European Blue-chips firms
Companies that are included in the index:
Banco Santander, Carrefour, L’Oreal, Nokia, Renault, etc.
Calculated by STOXX Ltd., created in 1998
Dow Jones Euro STOXX 50® - Underlying Index
8
Futures Cash Settlement
Dow Jones EURO STOXX 50® Index
Trading hours:
7:50AM – 10:00PM CET 12:50AM – 3:00PM CST
Minimum tick size:
1 index point = €10 / $14.50*
Multiplier:
10
9
10
Contract size:
at 4,400 index level = €44,000 / $63,800*
Contract months:
The 3 nearest quarterly months of Mar, Jun, Sep, Dec
Expiration:
The 3rd Friday of the maturity month at 12:00PM CET / 5:00AM CST
*EUR/USD = 1.4500
Reasons to trade on Eurex
Trade different time zones
Trading hours are from 12:50 AM CST - 3:00 PM CST.
Many moves that begin in Asia and Europe carry over intosimilar domestic USA products.
Diversification
New opportunities and product offerings in foreign markets
Decrease market exposure to US Corporate stock market
10
Decrease market exposure to US Corporate stock market
Large volume
Large open interest
Depth of market
Good movement / volatility
Gramza Capital Management, Inc.
Access to the European equity and debt markets
Benefit from the leverage effect of futures contracts
Lower transaction costs in futures
Hedge
Take foreign exchange risk
Euro-denominated contract
Reasons to trade on Eurex
11Gramza Capital Management, Inc.
Eurex Overview
Fibonacci Retracements
Concepts
Strengths
Weaknesses
Trading Applications
Q&A
AGENDA
12Gramza Capital Management, Inc.
Market Retracement is the return of a market to previously traded prices during anupward or downward trend.
Markets rarely trend straight up or straight down.
Typically, they retrace part of the direction of the trend before continuing.
Market Retracement
13Gramza Capital Management, Inc.
These retracement measurements are common to the Dow, Gann andFibonacci theories.
Leonardo Fibonacci, was an Italian mathematician in the 1200’s.
He created a numerical sequence of numbers.
Each number is determined by the sum of the previous two numbers.
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377,...
The ratio of any number to the next higher number approaches a
Market Retracement
14Gramza Capital Management, Inc.
The ratio of any number to the next higher number approaches aconstant value of .618 (8/13 = .612, 55/89 = .612)
The ratio of any number to the number occurring two places higherapproach a constant .382 (8/21 = .382, 55/144 = .382).
.382 is the inverse of .618 (1- .618 = .382).
38.2
50.0
BCAB
B
Market Retracement
15Gramza Capital Management, Inc.
50.0
61.8
C
A
100%
Market Retracement
Buy
16Gramza Capital Management, Inc.
0%
38.2%
50%
61.8%
Buy
Sell38.2%
0%
61.8%
50%
Market Retracement
17Gramza Capital Management, Inc.
100%
Eurex Overview
Fibonacci Retracements
Concepts
Strengths
Weaknesses
Trading Applications
Q&A
AGENDA
18Gramza Capital Management, Inc.
19Gramza Capital Management, Inc.
20Gramza Capital Management, Inc.
21Gramza Capital Management, Inc.
22Gramza Capital Management, Inc.
23Gramza Capital Management, Inc.
24Gramza Capital Management, Inc.
25Gramza Capital Management, Inc.
26Gramza Capital Management, Inc.
27Gramza Capital Management, Inc.
28Gramza Capital Management, Inc.
29Gramza Capital Management, Inc.
30Gramza Capital Management, Inc.
Eurex Overview
Fibonacci Retracements
Concepts
Strengths
Weaknesses
Trading Applications
Q&A
AGENDA
31Gramza Capital Management, Inc.
Trading Dow Jones EURO STOXX 50®Index Futures with Fibonacci
Retracement Techniques
32
Prepared and Presented by Daniel Gramza