Auto Fib Retracement Alerts

The Auto Fib Retracement Alerts indicator automatically identifies significant market swings and projects Fibonacci retracement levels to highlight potential reversal points and trigger entry alerts.

Usage

The Usage section describes how the script can be used to identify key market levels and potential trade setups. This tool is designed for Fibonacci traders who require automated level detection and real-time notifications when price interacts with specific retracement zones.

Signal Detection

The indicator plots labels on the chart when specific market conditions are met:

• Buy Retracement: This signal appears when the market is in an uptrend (Fibonacci end is higher than the start) and the price retraces back down to touch the user-defined retracement level.
• Sell Retracement: This signal appears when the market is in a downtrend (Fibonacci end is lower than the start) and the price retraces back up to touch the user-defined retracement level.

Visualizing Levels

The script draws the current Fibonacci sequence on the chart, including the start (0) and end (1) points. Users can visualize historical alerts through shapes drawn on the chart, allowing for backtesting and verification of past price reactions at specific levels.

Details

The script utilizes a zigzag-style logic to identify pivot highs and lows based on the Deviation and Depth settings. Once a new high or low is confirmed, the indicator automatically anchors a Fibonacci grid between the most recent two pivots.

The core logic monitors for the first instance where the price crosses the specified Retracement Level (defaulting to 0.618). To prevent noise, the script is designed to fire an alert only on the initial cross after a new Fibonacci structure is formed; subsequent crosses within the same pivot range do not trigger additional alerts.

Settings

• Deviation: The minimum percentage change required to establish a new pivot point.
• Depth: The minimum number of bars required between pivots.
• Extend Lines Left/Right: Controls whether the Fibonacci level lines extend infinitely across the chart.
• Retracement Level: Sets the specific Fibonacci ratio (e.g., 0.618) used to trigger Buy and Sell alerts.
• Reverse: Inverts the start and end points of the Fibonacci calculation.
• Levels Format: Toggles between displaying levels as decimal values (0.618) or percentages (61.8%).
• Fibonacci Levels (0 - 4.236): A series of checkboxes that allow users to toggle the visibility of specific Fibonacci retracement and extension levels.

FAQ

How do I adjust the sensitivity of the pivot detection? You can modify the "Deviation" and "Depth" settings; higher values will filter out minor price fluctuations and focus on long-term trends, while lower values will capture more frequent, short-term swings.

Can I set alerts for levels other than the default 0.618? Yes, you can change the "Retracement Level" input in the settings to any value (such as 0.5 or 0.382) to change which level triggers the Buy/Sell Retracement alerts.

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