Simple Fibonacci Candles + Levels
Feb 27, 2021
The Simple Fibonacci Candles + Levels indicator provides a streamlined approach to technical analysis by plotting Fibonacci retracement levels derived from historical price extremes and coloring candles based on price position relative to these levels. This tool is designed to help traders quickly identify trend strength and potential exhaustion zones without the complexity of traditional auto-fibonacci tools.
Usage
The indicator can be used to identify key support and resistance zones based on Fibonacci ratios. Traders can use the color-coded candles to determine the current market sentiment:
- Level 0 (Red): Represents the highest peak identified by the resolution setting.
- Level 1 (Orange): Corresponds to the 0.618 Fibonacci level.
- Level 2 (Yellow): Corresponds to the 0.50 Fibonacci level.
- Level 3 (Blue): Corresponds to the 0.382 Fibonacci level.
- Level 4 (Green): Represents the lowest trough identified.
If the closing price is above a specific level, the candle takes on that level's color, allowing for a quick visual assessment of whether price is holding above key retracement thresholds or breaking down into lower zones.
Details
The script functions by requesting high and low price data from a user-defined resolution (e.g., Daily). It maintains a record of the highest high and lowest low reached within that timeframe context.
- Dynamic Levels: The Fibonacci levels (0.618, 0.50, and 0.382) are calculated relative to the historical high and low.
- Alert Optimization: The indicator includes built-in alert triggers for crossovers and crossunders of every plotted level, facilitating automated monitoring of price action.
Settings
- Resolution: Determines the timeframe from which the high and low prices are pulled to calculate the Fibonacci levels. By default, this is set to "D" (Daily).
FAQ
How do I use the color-coded candles?
The candle colors change based on where the current close price sits in relation to the calculated Fibonacci levels. This helps in identifying which "zone" the price is currently trading in.
Can I set alerts for specific levels?
Yes, the script is optimized for alerts and will trigger a notification whenever the price crosses above or below any of the five plotted levels.
How do I access Simple Fibonacci Candles + Levels?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
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