Fibonacci Extension / Retracement / Pivot Points by DGT

The Fibonacci Extension / Retracement / Pivot Points indicator by DGT provides a comprehensive suite of automated Fibonacci analysis tools, including retracements, extensions, and pivot points, to identify key support and resistance zones. It integrates multiple technical concepts into a single tool to help traders determine potential trend reversal points and profit targets based on price structure and volatility.

Usage

The Usage section describes how the script can be used, examples should be provided in this section. This section also focuses on how main settings affect the indicator interpretation and output.

• Fibonacci Retracements: Automatically identifies pivot highs and lows to draw horizontal levels at key coefficients (23.6%, 38.2%, 50%, 61.8%, and 100%). These are used to find potential support levels during a pullback in an uptrend or resistance levels during a bounce in a downtrend.
• Fibonacci Extensions: Projects price targets beyond the current range after a retracement is completed. This is used to estimate how far a trend might continue and where potential reversals may occur.
• Fibonacci Pivot Points: Calculates static support (S) and resistance (R) levels based on a higher timeframe (HTF). If set to "AUTO," the script dynamically selects the HTF based on your current chart resolution (e.g., using Daily pivots for 5-minute charts).
• Time Zones: Displays vertical lines based on Fibonacci sequences to project potential timing windows where price volatility or trend shifts might occur.
• ZigZag & Swings: Highlights the underlying market structure by connecting significant highs and lows, helping to filter out minor price noise.

Details

The script utilizes an automated algorithm to detect "pivots" based on the Deviation and Depth settings. Deviation acts as a multiplier requiring the price to move a certain percentage away from a previous peak/trough to confirm a new swing. Depth ensures a minimum number of bars are considered to prevent premature pivot detection.

The Pivot Points feature uses the Fibonacci method for calculating levels rather than the Standard or Woodie methods. For intraday traders, the "AUTO" resolution logic is as follows:

• Charts ≤ 5m use 4H pivots.
• Charts 5m to 45m use Daily pivots.
• Charts 45m to 4H use Weekly pivots.
• Daily charts use Monthly pivots.
• Weekly charts use 3-Month pivots.

Settings

• Pick a Fibonacci Tool: Selects which specific analysis tool to display (Pivot Points, Retracements, Extensions, or combinations).
• Fibonacci Time Zones: Enables or disables vertical time-based projections.
• Deviation: Multiplier that determines how much price must deviate from a previous point to be considered a new swing.
• Depth: The minimum number of bars required to confirm a swing high or low.
• Pivot Points Timeframe: Sets the anchor timeframe for pivot calculations (Auto or user-defined).
• Only Relevant Pivot Point Levels: When enabled, filters out levels that have already been breached by price action.
• Historical Extension / Retracement Levels: Determines how many past Fibonacci sets remain visible on the chart.
• Reverse Extension / Retracement Levels: Flips the direction of the Fibonacci grid.
• Zig Zag: Toggles the visualization of the lines connecting swing points.
• Fibonacci Levels: A dedicated group of settings to toggle specific ratios (e.g., 0.618, 0.786) and customize their colors.

FAQ

How do I adjust the sensitivity of the Fibonacci levels?
You can adjust the Deviation and Depth settings in the "Swing Detection Settings" group. Higher values will result in fewer, more significant levels, while lower values will capture smaller price movements.

What is the difference between Retracements and Extensions in this script?
Retracements measure the internal pullback within a known price range, while Extensions project where the price might go once it breaks out of that range.

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