Fibonacci + Support/Resistant + Trendline (Price action)

The Fibonacci + Support/Resistant + Trendline (Price action) indicator automatically identifies and visualizes advanced price action confluence levels by combining Fibonacci retracements, support/resistance zones, and trendlines.

Usage

This tool is designed to identify high-probability entry points by looking for confluence between different technical analysis methods. The script identifies "Impulse Waves" based on Pivot Highs and Lows to determine the market structure.

• Bullish Scenario: When the script detects a Pivot High higher than the previous one, it draws an upward impulse wave. It then projects Fibonacci retracement levels (0.382, 0.5, 0.618, etc.) and identifies a "Support Zone" based on the previous broken high that price may return to retest.
• Bearish Scenario: If enabled, the script identifies downward impulse waves and projects resistance levels and Fibonacci retracements for short entries.
• Confluence: Users should look for areas where Fibonacci levels align with horizontal support/resistance zones or diagonal trendlines to find stronger trade setups.

Details

The script utilizes a sophisticated detection mechanism for pivot points and price action structures:

• Impulse Waves: Calculated using Pivot Highs and Lows with configurable lookback/lookforward periods.
• Fibonacci Retracement: Automatically calculated from the start of the impulse wave to the most recent pivot peak/trough.
• Support/Resistance Zones: These are drawn as colored boxes based on previous pivot levels that have been breached, following the principle of "role reversal" in price action.
• Trendlines: Drawn by connecting previous pivots to project potential diagonal support or resistance where price might retest.

Settings

• Find entry Long/Short: Toggle between looking for bullish or bearish trade setups.
• Pivot Detection (Left/Right Bars): Adjust the sensitivity of pivot point detection; higher values detect more significant but lagging swings.
• Custom Selection: Change the line width and extension length for Fibonacci, Support/Resistance, and Trendline visuals.
• Color Labels: Customize the appearance of Fibonacci level descriptions.
• Set up Alert: Choose specific price test conditions (e.g., price touching the 0.5 Fibonacci level or the Support Zone) to trigger notifications.

FAQ

How do I use the automated trendlines?

The indicator draws trendlines based on historical pivots. You can use these as diagonal support or resistance targets. When the price returns to test these lines after a breakout, it often signals a high-probability entry.

Can I change the Fibonacci levels?

The script currently focuses on the most significant price action levels: 0.236, 0.382, 0.5, 0.618, and 0.786. These are standard levels used by professional price action traders.

How do I access this tool?

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