Benner-Fibonacci Reversal Points

The Benner-Fibonacci Reversal Points indicator provides a systematic way to identify potential market turning points by applying the Benner Theory cycle patterns to modern price action. This tool automates the detection of historical and future pivots based on specific cyclical intervals, helping traders anticipate reversals across various timeframes.

Usage

The indicator can be used to identify cyclical peaks and troughs in the market. It functions by detecting a "seed" pivot and then projecting a sequence of labels backward and forward in time according to Benner's discovered cycles.

• Peak Cycles: Typically follow an 8-9-10 bar pattern.
• Trough Cycles: Typically follow a 16-18-20 bar pattern.
• Trend Identification: Users can display minor and major cycles simultaneously or independently to gauge both short-term fluctuations and long-term trend shifts.
• Crypto Optimization: The "Reverse the Algorithm" setting can be toggled, which may provide better alignment for specific asset classes like cryptocurrencies.

Details

The script is based on Samuel Benner’s 19th-century "Benner Theory," which suggests that market prices follow fixed, repeating cycles. Benner's observations regarding pig iron prices revealed patterns that closely align with Fibonacci numbers (such as the relationship between days in a year and the Fibonacci sequence).

While the original theory required manual date selection, this implementation is adaptive. It uses a pivot detection algorithm to find significant high and low points and then applies the cycle math (8-9-10 for peaks and 16-18-20 for troughs) to project potential reversal points.

Settings

• Resolution: Sets the timeframe for the indicator's calculations.
• Allow Repainting?: Determines if the indicator uses real-time or confirmed bar data.
• Reverse the Algorithm?: Flips the direction of the cycle calculation logic, often useful for specific volatile assets.
• Minor Peak/Valley Color: Customizes the visual output for short-term cycles.
• Major Peak/Valley Color: Customizes the visual output for long-term cycles.
• Show Minor/Major Peaks and Valleys: Toggles the visibility of specific cycle types.
• Lookback Length: Adjusts the sensitivity of the pivot detection for both Major and Minor cycles.

FAQ

How do I use the reversal labels?

The labels appearing in the future (forward-projected) represent estimated points in time where a reversal may occur based on the Benner cycle. Labels appearing in the past show the historical consistency of the current cycle.

Why are there two different colors for peaks and valleys?

By default, red labels indicate potential price peaks (resistance/sell points) and green labels indicate potential price troughs (support/buy points).

How can I access Benner-Fibonacci Reversal Points?

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