Auto Fibonacci Levels + Auto Trend Line generator

The Auto Fibonacci Levels + Auto Trend Line generator indicator automatically identifies and plots key Fibonacci retracement levels and dynamic support/resistance trend lines to assist in identifying potential market turning points.

Usage

The indicator provides a structured framework for analyzing price action through two primary components:

Fibonacci Retracement

The tool automatically calculates five key Fibonacci levels based on a user-defined lookback period.

• Support/Resistance Zones: Traders typically look for price rejections at the 61.8% and 76.4% levels or bounces from the 38.2% and 23.6% levels.
• Trend Context: If price remains below the 50% level while trending toward lower percentiles, it suggests bearish pressure; conversely, staying above 50% suggests bullish strength.
• Automatic Updates: When new highs or lows are established, the Fibonacci levels recalculate after a specified offset period to reflect the most recent market range.

Auto Trend Lines

The trend line generator identifies significant pivot points to plot support and resistance lines.

• Support Lines: These appear when the price is trading below the median (50%) Fibonacci level and a pivot low is detected.
• Resistance Lines: These appear when the price is trading above the median Fibonacci level and a pivot high is detected.
• Visual Cues: Initial coordinate dots indicate potential trend direction before the full line computation is finalized.

Details

The script uses ta.highest and ta.lowest over the "Fibonacci Length" to establish the range boundaries. Retracement levels are then derived mathematically from this range. The trend line component utilizes ta.pivothigh and ta.pivotlow functions, which require a lookback and look-forward window to confirm the validity of a peak or trough.

Settings

Automatic Trend Lines

• Plot Trend Line?: Toggles the visibility of the support and resistance trend lines.
• Trend Line Source: Determines the price source (e.g., Close, HL2) used for pivot calculations.
• Lookback Length: The number of bars required to the left of a pivot to confirm a high or low.
• Look Forward Length: The number of bars required to the right of a pivot to confirm a high or low.
• TrendLine Length: Adjusts the horizontal offset of the trend line plots.
• Show last: Limits the number of historical trend lines displayed on the chart.

Automatic Fibonacci Retracement

• Fibonacci Source: The price source used to determine the highest and lowest points.
• Fibonacci Length: The lookback period used to find the range for retracement calculations.
• Show Last: Controls the number of bars the Fibonacci levels extend across.
• Offset Length: Adjusts the horizontal displacement of the Fibonacci levels.

FAQ

How do I access Auto Fibonacci Levels + Auto Trend Line generator?

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

Why do the Fibonacci levels change?

The levels are dynamic and recalculate based on the "Fibonacci Length" setting. If a new high or low is formed within that window, the levels will adjust to the new range.

Can I use the trend lines for entry signals?

While trend lines identify areas of interest, it is recommended to use them in conjunction with other technical indicators or price action patterns to confirm entries.