Auto Fib Channels by DGT

The Auto Fib Channels by DGT indicator automatically identifies and plots Fibonacci Channels and Retracements to estimate dynamic support and resistance levels based on pivot points.

Usage

The Usage section describes how the script can be used to identify trend-based price targets and reversal zones. By automatically detecting market pivots, the tool projects diagonal Fibonacci channels and horizontal retracement levels across the chart.

Auto Fibonacci Channels

The primary feature projects diagonal lines based on Fibonacci ratios. Unlike standard retracements, these lines account for price action over time, creating a corridor of potential trend support and resistance. Users can adjust the "Deviation" and "Depth" settings to filter out market noise and focus on major or minor structural pivots.

Auto Fib Retracement and Extension

This feature provides horizontal levels aligned with the identified pivots. Users can toggle between "Fib Retracement" for internal pullbacks and "Fib Extension" for external price targets. The "Reverse" setting allows for flipping the level orientation depending on the trend direction.

Zig Zag Visualization

To help visualize market structure, the Zig Zag feature connects the high and low pivots used for the Fibonacci calculations. This helps traders confirm whether the current channel is anchored to significant swing points.

Details

The indicator utilizes a pivot detection algorithm that requires a minimum price change (Deviation) and a minimum number of bars (Depth) to confirm a high or low. Once three anchor points are established (two highs and one low, or vice versa), the script calculates the slope and projects multiple parallel lines at specific Fibonacci ratios (0.236, 0.382, 0.5, 0.618, etc.).

Diagonal channels are particularly effective in trending markets where horizontal support and resistance might be surpassed by the prevailing momentum. The historical plotting feature allows users to look back at how previous channels interacted with price action to validate the current setup.

Settings

Zig Zag Settings

• Zig Zag: Toggles the visibility of the lines connecting the pivot points.
• Color/Width/Style: Customizes the visual appearance of the Zig Zag lines.

Channel / Retracement-Extension Settings

• Deviation: A multiplier that defines the minimum percentage price move required to identify a new pivot.
• Depth: The minimum number of bars required between pivots.
• Fib Channel: Enables the plotting of diagonal Fibonacci channels.
• Fib Retracement/Extension: Selects between horizontal retracement levels or extension levels.
• Historical Channels: Defines the number of past pivot sets to display on the chart.
• Extend Lines: Extends the Fibonacci levels infinitely to the right.
• Reverse: Reverses the order of the Fibonacci levels.
• Level Labels: Toggles the display of prices, percentage values, or level labels.

Channel / Retracement-Extension Levels

• Level Visibility (0 - 4.618): Individual toggles for specific Fibonacci ratios.
• Level Price/Color: Allows for custom price inputs and color selection for each specific ratio.

FAQ

How do I adjust the sensitivity of the channel pivots? You can modify the "Deviation" and "Depth" settings in the Pivot section; higher values will result in fewer, more significant channels, while lower values will capture smaller price fluctuations.

Can I view previous Fibonacci levels that have already been breached? Yes, by increasing the "Historical Channels / Retracements-Extensions" value in the settings, you can display previous levels on the chart.

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