Directional patterns: the Fibonacci-based methodology of Joe DiNapoli.
Direction is the third leg of our approach. Once harmonics mark a reversal zone and classic structure confirms it, directional tools tell us whether momentum actually supports the trade.
The methodology: Joe DiNapoli
Our directional work is built on the methodology of Joe DiNapoli, set out in Trading with DiNapoli Levels. DiNapoli took Fibonacci analysis from theory to a strict, repeatable trading system — defining exactly how to measure levels and read momentum.
DiNapoli Levels and Fibnodes
The DiNapoli Levels are Fibonacci retracement and expansion points calculated from confirmed swings, used to project support, resistance and targets. His Fibnodes software popularised applying these levels consistently rather than by eye.
Displaced moving averages and the Oscillator Predictor
DiNapoli also uses displaced moving averages (DMAs) to define trend, and a MACD-based tool he calls the Oscillator Predictor to anticipate momentum turns. These directional cues are central to how we time entries.
How we apply directional patterns
Directional signals are the confirmation layer over our harmonic and classic analysis. A MACD switch or a DMA break, lined up with a harmonic reversal zone across timeframes, is exactly the kind of confluence we look for. We walk through these directional entries on live Gold, FX and crypto charts in our Videos section.
Watch it in action: reading directional pressure
We show how DiNapoli levels and dynamic momentum guide our directional bias on the live charts. Explore the full library in our Videos section, which covers most of the technical setups we trade.
Frequently asked questions
What are directional patterns in trading?
Directional patterns are signals that gauge the direction and strength of momentum, helping confirm whether to trade with or against a move. Our directional work is based on the Fibonacci-driven methodology of Joe DiNapoli.
Who is Joe DiNapoli?
Joe DiNapoli is a veteran trader and author of Trading with DiNapoli Levels. He developed a practical, Fibonacci-based approach to markets, including the DiNapoli Levels, Fibnodes, displaced moving averages and a MACD-based tool he calls the Oscillator Predictor.
What are DiNapoli Levels?
DiNapoli Levels are specific Fibonacci retracement and expansion levels applied in a defined, rules-based way to project support, resistance and profit targets. They are calculated from confirmed swing points rather than drawn arbitrarily.
How does Harmonics Pro Trader use directional patterns?
Directional tools tell us whether momentum supports a harmonic or classic setup. When direction, structure and pattern agree across timeframes, we act. We show these directional signals — including MACD-based switches — on live charts in our Videos section.
Educational content only. Nothing here is financial advice. Book attributions reference the author’s published works.