**Annotation
editor**

We can analyze each created chart, and place our analysis directly into the chart using the ANNOTATION EDITOR. We can also draw trend lines, levels of support and resistance, Fibonacci levels, use original numbering for Elliott waves, and write texts and notes in the chart - with one goal - to make it possible for the user to come back to the chart in a week or month, and get feedback on how he evaluated the price development of a certain stock or other security in the past. Moreover, charts edited and annotated in this way can be published in the form of ANNOTATED CHARTS, and you can therefore show your analytical work to others. This can be useful for a professional consultant. The annotation editor lies in the graphics editor under the function ANNOTATE. We can see it in the previous figure in the second upper bar.

Figure: Annotation editor functions. The image can be edited with the following functions:

Writing various texts - in a box or without it; the texts can be of various sizes.

Drawing geometric figures to highlight - squares, rectangles, triangles, circles.

Drawing straight lines - horizontal, vertical, and diagonal, with adjustable thickness and color.

Drawing arrows - with adjustable thickness and color.

Using the so-called Pitchfork tool to draw price channels.

Drawing a so-called regression channel.

Using Fibonacci levels on both a price scale and a time scale, including the extension; 1.618, 2.618 etc..

Marking Elliott waves - marking is consistent with Robert Prechter´s book “The Elliot Wave Principle.”

Using a price marker - with this function we can very quickly procure various spots in the chart.

An annotated chart can be printed, deleted, saved, and published.

The chart can be zoomed in and out when worked on.

To
describe all the functions of the annotation editor on the
__ www.finecharts.com __
website, I will use the graphics editor, and the annotation function.
However, my own chart contains no prices for clarity reasons.

Figure: Annotation editor functions - part one - in order to keep the figure clear, I only loaded it with a half of the functions.

**List
of functions with a description:**

Zoom out - enlarges the image

Erase - erases annotations

Save as image - saves the annotated chart as an image

Draw line - draws lines of various slopes, lenghts, thickness, and colors. For chosing the thickness of the line, there is a panel in the lower row of the tool bar showing various line thicknesses.

Draw circle - draws circles of various sizes, thicknesses of boundary line, colors, and color brightness. The circle can also be filled in. The panel with shades of grey in the lower row in the right part of the tool bar can be used to fill in the circle.

Place symbol - this tool contains symbols for the description of Elliot waves, which were defined by Robert Prechter in his book “Elliot Wave Principle.”

Draw arrow - a tool for drawing arrows in the form of a line with an arrow point.

Place time point - enables you to enter information about a date concerning a point in the chart that you select; anywhere in the chart.

Vertical line - draws a vertical line across a selected chart (only the main chart or subchart, not all charts). The line has the date and time information written on the edge of the chart.

Repeating horizontal lines - draws a horizontal grid in the chart; the user selects the distance between the lines.

Fibonacci retracement - enables you to draw Fibonacci return levels; levels, where the correction wave going against the prevailing trend of price development could stop. This includes these levels expressing a part of the length of the previous wave: 0.382 (38.2% of the length of the previous wave), 0.50, 0.618, 0.236, and 0.764, 0.786.

Fibonacci extension - like the previous tool, it works with Fibonacci levels, however, it is not used to determine the likely price target for correction waves going against the prevailing, but for momentum waves (waves of the main trend). Trend waves have linear relationships with eachother; Consecutive waves are often in the proportions of 1.272, 1.618, and 2.618 to each other. In Robert Prechter´s book, “Elliot Wave Principle,” these basic relationships between the waves are described:

Wave 5 is the same length as wave 1

The length of the fifth wave can be 1.618 times the distance between the initial price bottom and the peak of wave 3

The length of the third and fifth wave can together be 0.618 times the distance between the initial price bottom and the peak of wave 3 (extended first wave).

The length of the fifth wave can be 0.382 times the distance between the initial price bottom and the bottom of the fourth (correction) wave.

The length of the fifth wave can be 0.618 times the distance between the initial price bottom and the bottom of the fourth (correction) wave.

In A-B-C corrections the length of wave C can be 1.618 times the length of wave A.

Fibonacci retracement and Fibonacci extension have their own tools for use on a time line (horizontal direction).

Auto support resistance draws a horizontal line, whose color changes depending on whether the price is above or under this line, at a certain moment. If the price is under this line then the line works as resistance during eventual growth. It is therefore drawn in red. If the current price is above the line then the line works as support, and is illustrated in green.

Diff horizontal - this tool calculates the number of periods between the starting and ending point. This is very useful when looking for temporal patterns between developmental price waves. Certain relationships exist between the waves; the waves are subject to cyclical development. This is why individual waves often have a same length, or they are subject to relationships resulting from Fibonacci's ratios. The lengths of waves are often in terms of the number of periods of Fibonacci numbers - 8 years, 89 months, 34 months, 13 months, 5 years, and 21 months (a basic relationship applies to the Fibonacci numbers, where the sum of the previous two numbers determines the following number - 1+1=2, 1+2=3, 2+3=5, 3+5=8, 8+5=13, 13+8=21, etc).

Figure: Annotation editor functions - part two

Zoom in - Reduces the chart

Print - prints the chart

Select and edit objects - marks an already plotted element that the user wants to work with again (after a longer period of time)

Draw rectangle - draws rectangles. For choosing the thickness of the line, there is a panel in the lower row of the tool bar showing various line thicknesses. The rectangles can be filled in with color. To fill them in use the tools from the second lower bar of the annotation editor.

Draw triangle - draws triangles. Similar to previous function.

Place text box - makes labels for charts. The labels can either be free, or in a box. The box can be either blank or colorful, with various saturation.

Place value point - enables you to define the value of the chart in any place in the main chart.

Horizontal line - draws a line across the whole chart, and writes the line value on the right border. You can chose the color, thickness, and type of line (e.g. dashed).

Global vertical line - draws a vertical line across all charts and subcharts, on the edge of the charts, with the date and time.

Repeating vertical lines - creates a grid of vertical lines, defined by the user.

Pitchfork tool - this tool draws three parallel lines in the chart; these lines define the levels of support and resistance. With this tool we can define the hypothetical price channel in the early stages of the trend. To do this we have to define three significant points - the likely price peak or bottom (starting point), and two points connected with the first correction wave - namely the price peak no. 1, and the price bottom no. 2 of the correction wave.

Fibonacci retracement - for a time line - this tool is not used just for evaluating the price development, but also for determining the relationship between individual waves. For example, individual waves often either have the same length, or their length is in relations corresponding with one of the Fibonacci ratios or multiples.

Fibonacci extension - a tool for evaluating time relations between individual waves (on a horizontal time line).

Linear regression - draws an approximation of the price development between defined ultra time points (defined by the user in the chart). The regression line is calculated by the method of least squares. Next to the main regression line, two boundary lines are illustrated in the charts, which correspond with the variance values for the given time period (standard deviation). Like the Pitchfork tool, the linear regression tool can be used to draw price channels.

Diff vertical - this is a useful tool used to determine the length of the wave, and to subsequently determine price targets of currently developing waves. The basis for determining price targets is the assumption that individual price waves can have the same length, which is quite a typical case for wave 1 and wave 5. Therefore, if we know the length of wave 1, we can estimate the length of wave 5.

Simple arrow - a simple compact arrow with many usage possibilities.

As soon as the user makes all the annotations that he wishes to make, he must save the annotations. He can do this with the TOOLS button in the upper right corner of the annotation editor. Three other options lie under this button - SAVE, SAVE AS, and PUBLISH.

With the button SAVE we can save the current annotation into an already existent chart in a certain directory. With the button SAVE AS we can save the annotated chart under a different name into a directory of our choice.

With the button PUBLISH we can save the annotation into PUBLISHED ANALYSIS, if we are correcting it.

The following two figures show how the individual tools look in practice.

Figure:
Annotation editor tools - part one

Figure: Annotation editor functions - part two