Fibonacci Retracement Statistics by VolProfex

The Fibonacci Retracement Statistics by VolProfex indicator automatically detects price swings, tracks counter-trend retracements, and calculates the statistical frequency of price reaching specific Fibonacci levels. This tool provides traders with data-driven insights into retracement depth probabilities, helping to identify high-probability reversal zones and trend exhaustion points through a comprehensive on-screen statistics table.

Usage

The Usage section describes how the script can be used to analyze market structure and trend depth. Users can identify significant price pivots and visualize the relationship between primary swings and their subsequent pullbacks.

Swing Detection and HTF Context

The indicator utilizes a volatility-adaptive ZigZag engine based on ATR to identify significant highs and lows. Users can enable Higher-Timeframe (HTF) context to filter local swings, ensuring that only retracements occurring within the direction of a larger trend are counted. For example, if the 1-hour trend is bullish, the indicator can be set to only analyze bullish retracements on the 5-minute chart, reducing counter-trend noise.

Statistical Analysis

A real-time statistics table displays the count and percentage of swings that reached various Fibonacci levels (e.g., 38.2%, 50%, 61.8%). This allows traders to determine which levels are most respected for a specific asset and timeframe. The table is split into "UP" and "DOWN" sections to differentiate behavior between bullish and bearish trends.

Extension Tracking

When enabled, the tool tracks how often price continues to extension levels (e.g., 138.2%, 161.8%) after hitting a specific retracement. This helps in setting realistic profit targets based on historical continuation probabilities.

Details

The script employs several technical layers to ensure accuracy and performance:

• ATR-Deviation ZigZag: Pivots are confirmed only after price reverses by a specific multiple of the Average True Range (ATR). A "Min Swing Size" filter further discards insignificant price action.
• Spike Filter: To prevent false signals from low-liquidity spikes, the script calculates the wick-to-body ratio of the confirming bar. If the wick is disproportionately large, the reversal is ignored.
• Intraday Session Filtering: Users can restrict analysis to specific trading hours (e.g., New York session), which is particularly useful for excluding erratic overnight price action.
• Performance Optimization: All visual elements, including trend boxes, Fibonacci lines, and retracement labels, are drawn only on the last bar to maintain chart fluidity during real-time scrolling.

Settings

Swing Engine

• ATR Period: Sets the lookback period for volatility calculations used in pivot detection.
• ZigZag Deviation Multiplier: Determines the distance (in ATRs) price must move to confirm a new pivot.
• Min Swing Size: Filters out legs that do not meet a minimum price distance threshold.

HTF Context

• Use Higher Timeframe Swing Context: Enables filtering based on a secondary, higher timeframe.
• HTF Timeframe: Defines the period for the higher-level trend analysis.
• Exclude Retracements outside HTF swing: When active, only retracements fully contained within a major HTF swing are statistically tracked.

Filters

• Trend Direction: Restricts analysis to Uptrends, Downtrends, or both.
• Use Intraday Time Window: Limits the detection of swings to a specific session time.
• Enable Spike Filter: Activates the wick-to-body ratio check to filter out extreme price spikes.

Fibonacci Levels

• Level Selection: Individual toggles for standard levels (23.6% through 161.8%).
• Custom Fib Slots: Allows users to input up to five unique percentage levels for tracking.

FAQ

How do I interpret the percentages in the statistics table? The percentage represents the frequency with which a completed trend leg retraced at least to that specific Fibonacci level. A higher percentage suggests that the level is a common area for price pullbacks for that specific instrument.

Can I use this indicator for scalping on 1-minute charts? Yes, by adjusting the ATR Deviation and using the Intraday Time Window, you can optimize the tool to capture short-term volatility while filtering out noise from illiquid sessions.

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