Auto PitchFan, Fib Extension/Retracement and ZigZag by DGT

The Auto PitchFan, Fib Extension/Retracement and ZigZag indicator automates the plotting of Fibonacci-based PitchFans, retracements, and extensions anchored to price pivots. It provides a comprehensive toolkit for identifying trend trajectory, support/resistance zones, and potential reversal points without manual drawing.

Usage

The indicator functions by identifying significant pivot highs and lows using a Zig Zag algorithm. Users can toggle three main components:

• PitchFan: Best applied after the first wave of a trend has completed and a correction has begun. The rays act as inclined support and resistance levels. If the price bounces off a ray, the trend is likely to continue; if it breaks through, the next level is often tested.
• Fibonacci Retracements/Extensions: Automatically measures the distance between recent pivots. Retracements are used to find entry points during pullbacks, while Extensions help establish profit targets or identify overextended price action after a trend resumes.
• Zig Zag: Provides the visual foundation for the other tools, connecting pivots with straight lines to clarify the current market structure.

Details

The script's execution is rooted in identifying price reversals that exceed a specific threshold.

• Zig Zag Logic: This serves as the "engine" for the script. It filters out market noise based on the Deviation and Depth settings to establish the anchor points for all Fibonacci calculations.
• PitchFan Construction: These are rays originating from a trend's starting point, angled based on the Fibonacci sequence. The script recalculates the price value of these rays at each new bar, providing dynamic labels.
• Fibonacci Calculation: For retracements, the script divides the vertical distance between two extreme points by key ratios (23.6%, 38.2%, 50%, 61.8%, 100%). Extensions are projected outward to estimate price travel following a correction.

Settings

• Deviation: A multiplier that defines the percentage or price distance required to confirm a new pivot. Higher values result in identifying long-term trends, while lower values capture short-term fluctuations.
• Depth: The minimum number of bars required between pivots to prevent the indicator from reacting to minor price spikes.
• Historical PitchFan/Fibonacci Levels: Determines how many previous pivot sets remain visible on the chart for historical analysis.
• PitchFan Settings: Allows users to toggle specific Fibonacci rays (0.25, 0.382, 0.5, etc.), adjust line styles, and enable background coloring between rays.
• Fibonacci Retracements/Extensions: Includes options to switch between tool types, reverse levels, and extend lines infinitely to the right.
• Label Customization: Settings to display price, percentage levels, or both, with adjustable text sizes.

FAQ

How do I adjust the indicator for higher timeframes? Increase the "Deviation" and "Depth" values. This filters out smaller price movements and forces the Zig Zag logic to anchor only to significant, high-timeframe structural pivots.

Why are the Fibonacci Extensions not appearing correctly? Extensions require specific trend conditions (a move, a retracement, and a resumption). Ensure the "Pick a Fibonacci Tool" is set to "Extensions" and that your Deviation settings are wide enough to capture a clear three-point price structure.

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