Logarithmic Fibonacci Extension

The Logarithmic Fibonacci Extension tool provides traders with accurate Fibonacci extension levels calculated using logarithmic math, which is essential for analyzing large price movements and long-term timeframes where traditional linear extensions may fail.

Usage

To use the tool, users must manually input specific price points corresponding to Elliott Wave structures (Wave 0, Wave 1, and Wave 2). Once the values are entered, toggle the "Show lines" and "Show labels" settings to visualize the extension levels on the chart.

Example usage:

• Set Wave 0 to a major swing low.
• Set Wave 1 to a significant swing high.
• Set Wave 2 to the subsequent corrective low.

The tool will then project various Fibonacci ratios based on the logarithmic growth between these points. You can also toggle visibility for higher-order extensions (up to 2.000, 3.000, and 4.000) depending on the magnitude of the trend being analyzed.

Details

Standard Fibonacci tools use linear distance, which can lead to distorted levels on assets that exhibit exponential growth or significant volatility over several years. This script implements logarithmic scaling, ensuring that the percentage growth represented by Fibonacci ratios remains consistent across the entire price scale. This approach is widely preferred by Elliott Wave practitioners for macro-scale analysis.

Settings

• Wave 0: The starting price point for the extension calculation.
• Wave 1: The first peak or target price point.
• Wave 2: The retracement or secondary floor price point.
• Show lines: Toggles the visibility of the horizontal Fibonacci level circles.
• Show labels: Toggles the visibility of price/ratio labels on the chart.
• Label offset: Adjusts the horizontal position of labels to prevent overlapping with price action.
• Up to 2.000/3.000/4.000: Enables or disables higher Fibonacci extension levels.

FAQ

How do I use this on different symbols?

This is an indicator-based script, meaning the price inputs are manual. You will need to update the Wave 0, 1, and 2 values in the settings menu every time you switch to a different ticker.

Why are the lines hidden by default?

The lines are hidden by default to prevent chart warping. It is recommended to enter your desired price values first before enabling "Show lines" or "Show labels."

How can I access the Logarithmic Fibonacci Extension?

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