Fibonacci Ratios with Volatility

The Fibonacci Ratios with Volatility indicator plots dynamic intraday Fibonacci retracement and extension levels weighted by daily asset volatility to provide actionable support and resistance zones.

Usage

The tool is designed specifically for intraday traders operating on lower timeframes (typically up to 15 minutes). It automatically calculates and projects Fibonacci levels based on a combination of daily volatility and the previous day's price action. Traders can use these levels to identify potential reversal points or breakout targets.

When the price crosses a resistance level (green/neutral lines) or a support level (red/neutral lines), the script can trigger alerts. The levels include standard ratios such as 23.6%, 38.2%, 50%, 61.8%, 78.6%, and extensions up to 200%.

Details

The indicator calculates a "price range" by multiplying the daily volatility (derived from the standard deviation of daily log returns over a 10-day period) by a base price. The base price is determined by the relationship between the current day's open and the previous day's high and low; if the open is outside the previous day's range, the open is used as the base, otherwise, the previous day's close is used.

Key implementation details include:

• Volatility Weighting: Uses a 10-period standard deviation of daily returns to scale the Fibonacci levels, making them wider during high volatility and narrower during low volatility.
• Intraday Filtering: The script only plots on intraday timeframes to ensure the daily-based calculations remain relevant for scalping or day trading.
• Gap Handling: The logic accounts for market gaps by adjusting the base price used for the ratio projections.

Settings

As this script is highly automated and relies on underlying price action and calculated volatility, it primarily utilizes default technical parameters. Styling and visibility can be adjusted in the standard TradingView "Style" and "Visibility" tabs:

• Level Visibility: Users can toggle individual Fibonacci levels (e.g., 23.6%, 61.8%) on or off to clean up the chart.
• Colors: Change the default green (resistance), red (support), and blue (neutral) colors to match specific chart themes.

FAQ

How do I access the Fibonacci Ratios with Volatility indicator?

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

Why do the lines disappear on higher timeframes?

The script is optimized for intraday analysis. It uses a conditional check to only display data on intraday charts (less than daily) to prevent distortion of daily bars with intraday levels.

Can I set alerts for specific levels?

Yes, the script includes built-in alert conditions that trigger when the price crosses either a resistance Fibonacci level or a support Fibonacci level.