Automatic Fibonacci

The Automatic Fibonacci indicator automatically calculates and plots Fibonacci retracement levels on the chart to help traders identify potential support and resistance zones without manual drawing.

Usage

The tool identifies extreme peaks and troughs based on the user-defined timeframe and length to project key Fibonacci ratios. Traders can use these horizontal levels to spot price reversals or continuation points. To optimize the chart view, it is recommended to observe which levels price interacts with most frequently and focus on the zones created by those active levels.

The indicator is particularly useful for:

• Identifying high-probability support and resistance zones.
• Trading breakouts or bounces from specific Fibonacci ratios like 38.2%, 50%, or 61.8%.
• Viewing Fibonacci levels from higher timeframes (e.g., Daily or Weekly) on lower timeframe charts for a multi-timeframe perspective.

Details

The script utilizes request.security to fetch data from a specified timeframe, ensuring the levels remain consistent regardless of the chart's current resolution. It determines a "Zero" level based on the relationship between the open and close price, then calculates an upper and lower range using the highest high and lowest low over a lookback period.

Unlike traditional manual Fibonacci tools, this implementation includes a wide array of ratios, covering standard levels (14.6%, 23.6%, 61.8%, etc.) and more granular points to provide a comprehensive map of the price action landscape.

Settings

• Timeframe: Specifies the anchor timeframe for the Fibonacci calculations (e.g., 1D, 1W).
• Length: Determines the lookback period used to find the highest and lowest points within the selected timeframe.
• Style Settings: Users can toggle the visibility of individual Fibonacci levels (H 100 to H 14.6 and L 14.6 to L 100) in the "Style" tab to clean up the chart interface.

FAQ

How do I use the Automatic Fibonacci indicator?

Once added to the chart, the indicator will automatically plot levels based on the default settings. You can adjust the "Timeframe" and "Length" inputs to align the levels with your specific trading strategy.

What are the "H" and "L" levels?

"H" levels refer to the Fibonacci projections derived from the upper range (High to Zero), while "L" levels refer to projections from the lower range (Zero to Low).

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.