Fibonacci and Gann based Support and Resistance

The Fibonacci and Gann based Support and Resistance indicator provides a multi-layered approach to identifying key market levels by combining Gann Square of 9 theory with dynamic Fibonacci fractal levels. It aims to help traders pinpoint potential reversal zones and trend continuation points by projecting mathematically derived support and resistance lines based on historical price action.

Usage

The tool can be used to identify high-probability areas where price might react. Traders can look for "confluence zones" where both Gann and Fibonacci levels align closely.

• Gann Square of 9: The indicator plots circles representing mathematical price square levels. These act as psychological and technical milestones for price movement.
• Fibonacci Fractals: The script identifies the highest high and lowest low over a user-defined lookback period and projects standard ratios (0.236, 0.382, 0.5, 0.618, 0.786) as well as extensions (1.618, -1.618) and custom ratios.
• Gann-Fibonacci Hybrid Levels: The script calculates secondary "Gann" sub-levels between major Fibonacci ratios, creating a dense grid of potential support and resistance.

Details

The indicator utilizes two distinct mathematical concepts:

1. Gann Square of 9: It calculates the square root of the current price, rounds it to the nearest integer, and then squares subsequent integers to find "natural" support and resistance levels.
2. Dynamic Fibonacci: It uses a fibLength lookback to find significant local peaks and troughs. These are then passed through a request.security call to stabilize the levels across the chosen timeframe, ensuring the ratios are calculated from significant historical pivots.

Settings

Fibonacci and Lookback

• Timeframe For Fib Levels: Determines the timeframe used to calculate the high and low pivots for Fibonacci projection.
• Fibonacci Lookback Length: The number of bars the script looks back to find the absolute highest high and lowest low.
• Set Offset: Adjusts the horizontal shift of the Fibonacci plots on the chart for better visibility.
• Transparency: Controls the opacity of the secondary Gann and Fibonacci lines to manage chart clutter.

FAQ

How do I use the Gann levels for entries?

Gann levels are often used as targets or areas to look for price exhaustion. When price approaches a Gann Level 1 or 2 (plotted as circles), traders often look for candlestick reversal patterns.

Why are there so many lines?

The indicator is designed to provide a "roadmap" of price. You can use the transparency setting to fade the secondary levels and focus only on the major Fibonacci levels (0, 0.5, 1).

How can I access Fibonacci and Gann based Support and Resistance?

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