Fibonacci levels alerted as Support and Resistance lvls

The Fibonacci levels alerted as Support and Resistance lvls indicator provides automated signals when price action interacts with key Fibonacci retracement levels as potential support or resistance.

Usage

The indicator can be used to identify potential reversal points or areas of price exhaustion.

• Resistance Signals: Appear when the high of a candle crosses a Fibonacci level, but both the open and close remain below it. This indicates that price momentum was insufficient to break and hold above the level.
• Support Signals: Appear when the low of a candle crosses below a Fibonacci level, but the open and close remain above it. This suggests that buyers defended the level, preventing a bearish breakdown.

Traders often use these signals to guide entry and exit points, set price targets, or validate broader technical setups. It is recommended to use these signals in conjunction with other technical analysis tools for better confirmation.

Details

The script calculates Fibonacci levels based on the highest high and lowest low over a user-defined lookback period. The default period is set to 365 bars, which is often used to capture yearly highs and lows on daily timeframes. The tool monitors the following standard Fibonacci ratios:

• 0.236
• 0.382
• 0.500
• 0.618
• 0.764

The logic specifically looks for "wicks" through these levels while the candle body remains on the opposite side, highlighting the failure of price to sustain a move beyond the Fibonacci threshold.

Settings

• Fibonacci lookback length: Determines the number of bars used to calculate the highest high and lowest low for the Fibonacci retracement range.

FAQ

How do I use the signals for trading?

The signals are designed to highlight price rejection. A resistance signal (R) might suggest a potential short entry or a place to take profits on longs, while a support signal (S) might suggest a potential long entry or a place to cover shorts.

Can I set alerts for specific levels?

Yes, the script includes alert conditions for each individual Fibonacci level, as well as grouped alerts for any support or resistance hit.

How can I access Fibonacci levels alerted as Support and Resistance lvls?

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