RSI Fibonacci Flow

The RSI Fibonacci Flow indicator combines automatic Fibonacci retracement levels with RSI momentum analysis to identify high-probability trading zones through a unique confluence scoring system. By integrating price-based structural levels with momentum timing, this tool helps traders visualize where price might reverse and whether the current momentum supports such a move.

Usage

The Usage section focuses on identifying optimal entries based on the interaction between price zones and momentum indicators.

• Identifying Entry Zones: Traders should wait for the price to retrace into the 38.2%–61.8% zone. Look for the "STRONG" confluence rating (4-5) in the dashboard, which occurs when RSI extremes align with these Fibonacci levels.
• Fibonacci Zones:
  • Golden Zone (50%-61.8%): Highlighted as the optimal entry area for trend continuation.
  • 23.6% - 38.2%: Suggests a shallow retracement in a strong trend.
  • 78.6% - 100%: Indicates a deep retracement where the trend might be failing.
• Take Profit Targets: Extension levels at 127.2% (TP1) and 161.8% (TP2) are automatically calculated and displayed on the dashboard for objective exit planning.

Details

The indicator utilizes a center-bar comparison algorithm to detect swing highs and lows automatically, removing the subjectivity typically associated with manual Fibonacci plotting.

Confluence Scoring System: A 0–5 point scale quantifies the setup quality:

• +2 points: Price is within the Golden Zone.
• +1 point: Price is in the wider entry zone (38.2%–61.8%).
• +1 point: RSI is in an extreme state (Oversold in uptrend / Overbought in downtrend).
• +1 point: RSI divergence is detected.
• +1 point: Strong RSI momentum change (> 2 points).

Settings

Pivot Detection

• Pivot Depth: The number of bars used to confirm a swing high or low.
• Min Deviation %: The minimum percentage price move required to confirm a new pivot.

RSI Settings

• RSI Length: The period used for the RSI calculation.
• Overbought/Oversold: Thresholds for identifying momentum extremes.

Fibonacci Display

• Show Fib Lines/Labels: Toggles the visibility of horizontal retracement levels and price data.
• Show Golden Zone Box: Enables the semi-transparent highlight between the 50% and 61.8% levels.
• Extend Fib Lines: Extends the levels into the future for easier visual tracking.

Signals & Dashboard

• Show Entry Signals: Toggles BUY/SELL labels on the chart.
• Show Dashboard: Toggles the information panel displaying RSI state, trend, and confluence score.

FAQ

How do I access the RSI Fibonacci Flow? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What does a "Strong" confluence score mean? A score of 4 or 5 indicates that multiple technical factors (Fibonacci level, RSI momentum, and divergence) are aligning simultaneously, suggesting a higher probability setup.

How is the trend direction determined? The trend is determined by the sequence of automated pivots; an uptrend is identified when the last confirmed pivot was a low following a high, while a downtrend is identified when the last pivot was a high following a low.