TechniTrend: Dynamic Local Fibonacci Levels

The TechniTrend: Dynamic Local Fibonacci Levels indicator dynamically plots Fibonacci retracement levels during periods of significant market volatility to help traders identify actionable support and resistance zones. By filtering out calm market periods using an ATR-based threshold, it ensures that levels are only displayed when price action is meaningful and sufficiently expansive.

Usage

The tool is designed to highlight key retracement levels during high-activity swings. Users can monitor price reactions at the plotted levels (0.0 through 1.0) to find potential entry or exit points. The "Aligned Candles" toolkit further enhances analysis by identifying specific candle formations (based on body and shadow ratios) that occur near a designated Fibonacci axis. For example, a trader might look for an "Aligned Candle" (AC) signal above the 0.618 level to confirm a bullish rejection during a volatile trend.

Details

The script calculates local high and low points over a user-defined lookback period. It uses the Average True Range (ATR) multiplied by a sensitivity factor to determine if the current range is "volatile" enough to justify plotting Fibonacci levels. If the range between the high and low is less than this threshold, the levels remain hidden to reduce chart noise. The "Aligned Candles" feature uses mathematical ratios to compare the candle's body, upper shadow, and lower shadow to its total range, providing a precise way to filter for specific price action behaviors.

Settings

Dynamic Local Fibonacci

• Chart Type: Choose between using "Candles" (includes wicks) or "Line" (uses close prices) to determine local highs and lows.
• Length for High/Low Detection: The lookback period used to find the highest and lowest price points.
• ATR Multiplier for Volatility Detection: Sets the sensitivity for displaying levels; higher values require more volatility to show the Fibonacci grid.
• Fib Level 0 - 7: Customizable inputs for specific Fibonacci ratios (defaulting to standard levels like 0.236, 0.382, 0.5, etc.).

Aligned Candles

• Enable Aligned Candles Toolkit: Toggles the visibility of candle-based signals.
• Fibonacci Axis Level: Defines the specific Fibonacci level used as a reference point for filtering signals.
• Axis Position: Filters signals based on whether they occur "Above", "Below", or on "Both" sides of the axis.
• Body/Shadow to Range Ratios: Parameters to define the ideal candle shape by setting the target percentage of the body, upper shadow, and lower shadow.
• Tolerance: The allowed variance from the target ratios for a candle to be considered "Aligned".

FAQ

How do I use the Aligned Candles feature?

Activate the toolkit in the settings and adjust the body and shadow ratios to match the candle types you are looking for (e.g., small bodies for dojis or long shadows for pins). The "AC" label will appear when a candle meets these criteria relative to your chosen Fibonacci axis.

Why are the Fibonacci levels not appearing on my chart?

The levels only appear when market volatility exceeds the threshold. If they are missing, try lowering the "ATR Multiplier" or increasing the "Length for High/Low Detection".

How can I access TechniTrend: Dynamic Local Fibonacci Levels?

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