Fibonacci Alerts

The Fibonacci Alerts indicator is a tool designed to notify traders when price action reaches specified Fibonacci retracement and extension levels based on user-defined high and low points. This script simplifies range trading and pullback analysis by generating visual and audible signals when the price enters a configurable percentage threshold of a key level.

Usage

To use the Fibonacci Alerts tool, follow these steps:

1. Identify a significant high and low point on your chart using standard Fibonacci retracement or extension techniques.
2. Enter these price values into the indicator settings to anchor the levels.
3. Observe the plotted Fibonacci levels (0, 0.236, 0.382, 0.5, 0.618, 0.786, 1, 1.312, 1.618, and 2.618).
4. The script generates a "Buy" signal (green arrow) when the price reaches a lower Fibonacci level relative to the previously touched level, suggesting a potential entry on a dip.
5. The script generates a "Sell" signal (red arrow) when the price reaches a higher Fibonacci level relative to the previously touched level, indicating a potential exit or profit-taking zone.

For best results, it is recommended to set alerts to "Once Per Bar" to capture price touches in real-time, and to use this tool in conjunction with other trend-following indicators like Moving Averages.

Details

The script calculates ten distinct Fibonacci levels based on the range between the "Lower fib level" and "Higher fib level" inputs. It employs a proximity logic where a signal is only triggered if the closing price falls within a specific percentage threshold of a level. This prevents signals from triggering when price is far from the intended zones. The logic tracks the "latest" touched level to determine if the move to the current level constitutes a bullish or bearish progression within the Fibonacci sequence.

Settings

• Lower fib level: The price value representing the base (0 level) of your Fibonacci sequence.
• Higher fib level: The price value representing the top (1 level) of your Fibonacci sequence.
• Fibonacci line percentage threshold: The decimal percentage (e.g., 0.005 for 0.5%) used to define the sensitivity zone around each Fibonacci line.

FAQ

How do I access Fibonacci Alerts?

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

Can I use this for both bull and bear markets?

Yes, by defining the lower and higher levels appropriately, you can set the range for any market condition, though the current logic is optimized for identifying pullbacks and extensions within a defined range.

Why didn't an alert trigger when price touched a line?

The indicator checks the close price against the percentage threshold. If the price touches a line but the candle closes outside the percentage threshold defined in the settings, a signal may not trigger depending on the calculation timing.