Another indicator for you guys!!! This indicator consists of the 5 key Fibonacci retracement levels, plotted automatically to user input settings. I also have included an auto support/resistance trend line generator.
What is a Fibonacci retracement? 'Fibonacci retracement is a method of technical analysis for determining support and resistance levels. It is named after the Fibonacci sequence of numbers, whose ratios provide price levels to which markets tend to retrace a portion of a move before a trend continues in the original direction.' - Wikipedia
How to use the Fibonacci retracement? - The Fibonacci levels are default. These percentiles from price to the average of the high in a sample and low in a sample give you a guideline of where a bottom may be, where a top may be, and where a range is being created. - Look for the price to reject from 61.8% and 76.4%, and also look for price to bounce from 38.2% and 23.6%. If a lower low/higher high is made, the fib levels will follow and the percentiles within will be recalculated after a 5 candle offset period. - If you see price trending towards the lower percentiles (38&23) and using the 50% as resistance, look for a break downwards and vice versa. -This Fibonacci set as all others is subject to fake-out, always use this with another series indicator, or don't use it as a signal for entry at all (unless you have a backdated strategy)
How to use the trend line generator? -The trend line generator will only plot when a lower low/higher high has taken place within the input amount of candles. It is also offset by a user amount. -The check box will give the option to have the trend line's plot or not. - If you see a green/red dot it means that that will be your first coordinate for the trend line, and until the computations are complete it will give you an idea of which direction it will be in (resistance or support) -When opening this indicator zoom out all the way to connect any trend lines that do not load automatically.
Let me know if you have any questions, suggestions or issues! Thank you everyone! -Cheatcode1 :)
@CheatCode1 ehi bro, firstly thx for your script, just one question; are you sure that fibo levels are calculates correctly? I think they aren´t taking in consideration the maximum and minimum of the wicks to make the retracement.
anyway thx for your contribution!
CheatCode1
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@Nagast, Hey man thanks for checking it out! The Fibonacci's do not take into account wicks when calculating by default. If you would like to have the wick high's and lows considered, under the 'Automatic Fibonacci Retracement' settings, change the 'fibonacci source' to either 'hl2' or 'hlc3', both would work just depends on your preference. Thanks again.