Linear and Logarithmic Fibonacci Levels and Fans

The Linear and Logarithmic Fibonacci Levels and Fans indicator provides a versatile tool for technical analysis, allowing traders to project key support and resistance levels using both linear and logarithmic calculations alongside Fibonacci fans. This dual-calculation approach offers a more comprehensive view of price action, especially in markets characterized by extreme volatility.

Usage

The tool is designed to be as intuitive as standard drawing tools. Users select two reference points (Level 1 and Level 0) directly on the chart to establish the price range. Once set, the indicator automatically plots Fibonacci retracement levels and fans.

• Volatile Markets: In high-volatility environments like cryptocurrency or growth stocks (e.g., TSLA, NVDA), logarithmic levels are often more precise as they account for proportional price changes.
• Fibonacci Fans: These can be toggled to add trendline-based projections, helping identify diagonal support and resistance zones.
• Trend Analysis: By using the "Reverse" setting, traders can quickly switch the orientation of the Fibonacci sequence to match the current trend direction.

Details

Traditional Fibonacci tools often require the user to change their entire chart scale to "Log" to see logarithmic levels. This indicator calculates these levels mathematically based on the selected price points, allowing you to view both linear and logarithmic levels simultaneously without altering your global chart settings. The calculation for logarithmic levels divides the price distance into proportionally equal segments, which is highly effective for assets experiencing exponential growth or significant percentage-based moves. This implementation builds upon concepts derived from the community (credit to zekicanozkanli) with added fan projections and enhanced customization.

Settings

Coordinates

• Level 1 / Level 0: Interactive price and time selection for the Fibonacci range.
• Fans: Toggle the visibility of Fibonacci Fan lines.
• Fib: Toggle the visibility of horizontal Fibonacci retracement levels.

Style

• Extend Left / Extend Right: Extends the horizontal level lines across the chart.
• Linear / Logarithmic: Independent toggles for linear and logarithmic level displays, including line style and color options.
• Global Color: When enabled, applies a uniform color to all levels.
• Show Trend Line: Toggles the visibility of the primary line connecting Level 1 and Level 0.
• Labels: Customization options for label size, position, and whether to show price or Fibonacci values.

Levels

• Level Visibility (L1-L12): Individual toggles and value inputs for up to 24 different Fibonacci ratios, including separate visibility controls for the fan components.

FAQ

How do I access the Linear and Logarithmic Fibonacci Levels and Fans?

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

Why would I use logarithmic levels instead of linear ones?

Logarithmic levels are superior for long-term charts or highly volatile assets because they represent price changes in percentage terms rather than absolute dollar amounts, reflecting how the market actually perceives value growth.

Can I see both linear and logarithmic levels at the same time?

Yes, this indicator allows you to overlay both calculation methods on a single chart simultaneously, providing a clearer picture of where different technical levels converge.