Golden Ratio Fibonacci Multipliers Top Detector

The Golden Ratio Fibonacci Multipliers Top Detector indicator identifies critical long-term market cycle tops and bottoms by applying Fibonacci multipliers to major moving averages.

Usage

The tool is primarily designed for high-timeframe analysis (6H, 1D, 3D) to identify macro market cycle extremes. Traders can use the various multiplier levels to gauge potential exhaustion points or accumulation zones.

• Top Detection: A specific "TOP DETECTED" signal occurs when the 350-day SMA multiplied by 2 crosses under the 111-day SMA, indicating a potential market peak.
• Cycle Multipliers: The script plots several multipliers (1.618, 2, 3, 5, 8, 13, 21) derived from the 350 SMA. These act as dynamic resistance levels during parabolic moves.
• Bottom Detection: The 0.702 multiplier of the 350 SMA serves as a historical support zone for identifying cycle bottoms.
• Standard Averages: The indicator includes EMA 21, SMA 50, and SMA 200 to provide context with widely used institutional moving averages.

Details

This script is based on the "Golden Ratio Multiplier" concept popularized by Philip Swift. It utilizes the 350-day Moving Average as a base for its calculations. The logic suggests that market cycles often peak when price or shorter-term averages interact with specific Fibonacci multiples of this long-term average. By combining these multipliers with a cross-over detection system between the 111 SMA and the 350 SMA x 2, the tool aims to pinpoint significant trend reversals.

Settings

• SMA 111: Visualized as a dashed gray line; used in conjunction with the x2 multiplier for top detection.
• SMA 350: The core orange line serving as the basis for all Fibonacci multipliers.
• Golden Ratio (1.618): A key multiplier level often acting as initial major resistance.
• Higher Multipliers (3 to 21): Used to track extreme price expansion during bull markets.
• EMA 21, SMA 50, SMA 200: Standard trend-following moving averages included for comprehensive chart analysis.

FAQ

How do I use the top detector?

The script automatically plots an "X" shape with the text "TOP DETECTED" on the chart when the specific mathematical condition between the 111 SMA and the 350 SMA x 2 is met.

Which timeframes are best for this indicator?

While it can be applied to any chart, it is most effective on the 6-hour, Daily, and 3-Day timeframes for identifying macro cycles in assets like Bitcoin and Ethereum.

How can I access Golden Ratio Fibonacci Multipliers Top Detector?

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