# Fibonacci Grid

Fibonacci Grid is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

The Fibonacci Grid lays a lattice of diagonals across the chart, spacing them by Fibonacci ratios applied to the highest and lowest Source values (close by default) between two points you select on the chart, or switching to equidistant lines on demand. Converging diagonals frame channels that contain price until a breakout, handing traders ready-made diagonal support and resistance.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 28, 2022.
- Access: free.
- Concepts: [Fib Retracement](https://www.luxalgo.com/library/concept/fib-retracement/) (primary), [Fib Extension](https://www.luxalgo.com/library/concept/fib-extension/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn1lfs0026vhsg3dazdinc
- Page: https://www.luxalgo.com/library/indicator/fibonacci-grid/

**Fibonacci Grid** projects support and resistance diagonally instead of horizontally. You set an evaluation area by picking two points on the chart. Every line runs parallel to one of the area's diagonals and is positioned using [Fibonacci ratios](https://www.luxalgo.com/library/concept/fib-retracement/) applied to the highest and lowest Source values (close by default) inside the area (or, for uniform structure, switched to equidistant spacing). The result is a lattice where price interacts with sloped levels whose values evolve bar by bar rather than sitting flat.

## How to Trade the Fibonacci Grid?

- **Individual diagonals**: each line is a candidate support or resistance level; watch for price riding along a diagonal or rejecting it outright.
- **Converging lines form channels**: price tends to travel inside these corridors until a breakout, and the break itself can flag a shift in market conditions.
- **Distance from the main diagonals**: moves that stretch far from the orange main diagonals typically gravitate back toward the narrower channels, a built-in mean-reversion cue.
- **Ratio versus equidistant spacing**: Fibonacci spacing tightens the channels as they extend from the center of the evaluation area; equidistant spacing keeps every gap uniform.

## Fibonacci Grid Settings

- **Start and end points**: two times you pick on the chart when adding the indicator; the highest and lowest Source values (close by default) between them frame the grid.
- **Resolution**: grid density when Fibonacci spacing is off. Higher values draw more lines.
- **Use Fibonacci Ratios**: positions the lines at six specific Fibonacci ratios instead of equal intervals.

## Frequently Asked Questions

### Can I combine Fibonacci and equidistant lines?

No. The grid runs in one mode at a time. Toggle Use Fibonacci Ratios on for ratio-based placement or off for uniform spacing, and match the choice to how you frame the market.

### How is a diagonal grid different from standard retracements?

Standard retracements are horizontal levels fixed between two prices. The grid tilts its levels along the diagonals of the evaluation area, so each level's price changes as bars pass: support and resistance with a time axis. For the classic horizontal toolset, the [Fibonacci Toolkit](https://www.luxalgo.com/library/indicator/fibonacci-toolkit/) carries retracements, arcs, fans, and more.

### How do I get the Fibonacci Grid?

It costs nothing. The grid is part of the free LuxAlgo Library, and Quant, our coding agent, can run and backtest it directly from this page. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Fibonacci Toolkit](https://www.luxalgo.com/library/indicator/fibonacci-toolkit/) (Fib Retracement): markdown at https://www.luxalgo.com/library/indicator/fibonacci-toolkit.md
- [DTFX Algo Zones](https://www.luxalgo.com/library/indicator/dtfx-algo-zones/) (Fib Retracement): markdown at https://www.luxalgo.com/library/indicator/dtfx-algo-zones.md
- [Fibonacci Confluence Toolkit](https://www.luxalgo.com/library/indicator/fibonacci-confluence-toolkit/) (Fib Retracement): markdown at https://www.luxalgo.com/library/indicator/fibonacci-confluence-toolkit.md
- [Fibonacci Trailing Stop](https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop/) (Fib Retracement): markdown at https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop.md
- [Fibonacci Ranges (Real-Time)](https://www.luxalgo.com/library/indicator/fibonacci-ranges-real-time/) (Fib Retracement): markdown at https://www.luxalgo.com/library/indicator/fibonacci-ranges-real-time.md
- [MSS Sweep Fib Retrace](https://www.luxalgo.com/library/indicator/mss-sweep-fib-retrace/) (Fib Retracement): markdown at https://www.luxalgo.com/library/indicator/mss-sweep-fib-retrace.md
- [9:30 AM 15m Fib Breakout](https://www.luxalgo.com/library/indicator/9-30-am-15m-fib-breakout/) (Fib Extension): markdown at https://www.luxalgo.com/library/indicator/9-30-am-15m-fib-breakout.md
- [Market Structure & Fibonacci Zones + RR](https://www.luxalgo.com/library/indicator/market-structure-fibonacci-zones-rr/) (Fib Retracement): markdown at https://www.luxalgo.com/library/indicator/market-structure-fibonacci-zones-rr.md

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Source: https://www.luxalgo.com/library/indicator/fibonacci-grid/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/