Auto Fibonacci Bands for Harmonic
Jan 19, 2019
The Auto Fibonacci Bands for Harmonic indicator provides a dynamic set of Fibonacci-based levels calculated from the previous session's price range to assist in identifying harmonic price action and potential reversal zones.
Usage
The tool is primarily used to identify key support and resistance levels based on Fibonacci ratios that are often observed in harmonic trading patterns. Traders can use these bands to anticipate price reversals or breakouts relative to the previous day's volatility.
The indicator plots several key levels:
- 1.000 and 0.000 Levels: Represent the primary boundaries based on the previous period's high-low range, centered around the previous close.
- Inner Fibonacci Ratios: Levels such as 0.886, 0.786, and 0.618 are frequently used by harmonic traders to identify "Potential Reversal Zones" (PRZ).
- Extension Levels: Levels like 1.618 and 2.618 help identify overextended price movements or secondary targets.
- Mid-Point: A central line representing the previous period's closing price, acting as a pivot for the current session.
Details
The script calculates the price range (High - Low) from a specified timeframe (defaulting to Daily). It then uses the previous session's close as the center point (0.5 equivalent in traditional retracements) and projects Fibonacci extensions upward and downward based on the calculated range.
Unlike static Fibonacci retracements drawn manually, these bands automatically update with each new session, providing a consistent framework for analyzing volatility. The ratios included specifically cater to harmonic enthusiasts, featuring coordinates such as 0.886 and 0.786 which are vital for identifying patterns like the Bat or Gartley.
Settings
- Average Length: Determines the timeframe used to calculate the price range and the center point (e.g., Daily, Weekly).
FAQ
How do I use the levels for trading?
The levels act as dynamic support and resistance. Harmonic traders often look for price exhaustion or specific candlestick patterns near the 0.786 and 0.886 levels for entries.
Can I change the source timeframe?
Yes, the "Average Length" setting allows you to base the Fibonacci calculations on different timeframes such as Daily or Weekly ranges.
How can I access Auto Fibonacci Bands for Harmonic?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
Trading & investing are risky and many will lose money in connection with trading and investing activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools and strategies, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content, tool, or platform feature we provide.
Charts used on this site are by TradingView in which the majority of our technical indicators are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
Market data is provided by CBOE, CME Group, BarChart, Massive, CoinAPI. Select U.S. equities data is provided through Massive. CBOE BZX real-time U.S. equities data is licensed from CBOE and provided through BarChart. Real-time futures data is licensed from CME Group and provided through BarChart. Select cryptocurrency data, including major coins, is provided through CoinAPI. All data is provided “as is” and should be verified independently for trading purposes.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2026 LuxAlgo Global, LLC.