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Fibonacci Trailing Stop

By LuxAlgoSep 12, 2023

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Fibonacci Trailing Stop turns swing-anchored Fibonacci levels into a trailing stop that only ever moves with the trend. Each new swing high or low redraws the underlying Fibonacci pattern, and your chosen level becomes the stop line, rising beneath price in uptrends, falling above it in downtrends, and calling a reversal the moment price breaks through it.

How to Trade the Fibonacci Trailing Stop?

  • Line below price: uptrend. Trail long positions on the line, which rises or holds but never gives ground.
  • Line above price: downtrend. The mirrored logic caps rallies and trails shorts.
  • Line breached: per the Trigger choice (close or wick), a breach flips the trend call, the tool's core reversal signal.
  • Pattern alignment: Fibonacci levels sitting in the lower half of the pattern support the uptrend case, the upper half the downtrend: structural confirmation of the current state.
  • Shadows: previous Fibonacci levels shown after a one-bar delay; large shadow blocks flag zones where support and resistance concentrate.

A secondary, color-filled line built from minor swings runs alongside the main stop, and the whole design slots naturally among the risk and exit tools whenever a rule-based way out of a trade is needed.

Fibonacci Trailing Stop Settings

  • L / R: the pivot lookbacks that define swing highs and lows.
  • Swing labels: marks swings aligned with the active trend direction.
  • Level: which Fibonacci level the stop follows: presets from -0.5 to 0.618, or a custom value.
  • Trigger: whether a close or a wick counts as a breach, using highs in downtrends and lows in uptrends.
  • Latest Fibonacci / Shadows: display the current pattern's levels and keep prior ones as shadows; enabling shadows removes the color fill to keep the chart readable.

Frequently Asked Questions

Free indicator

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MetaTrader 4/5
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