Auto Fib Speed Resistance Fans by DGT

The Auto Fib Speed Resistance Fans by DGT indicator automatically plots Fibonacci speed resistance fans to identify potential support and resistance levels based on trend velocity and time/price percentages.

Usage

The Usage section describes how the script can be used to identify trend corrections and speed. Traders typically use this tool to predict reversal points where price intersects with the fan lines.

• Trend Identification: The tool automatically connects major troughs and peaks. A fan is drawn from the starting pivot to the ending pivot, creating a geometric grid of potential reaction zones.
• Support and Resistance: The speed resistance lines act as dynamic boundaries. The 61.8% level is frequently cited as a key area for trend continuation or reversal.
• Time and Price Analysis: Unlike standard retracements, this tool plots lines based on both time (horizontal distance) and price (vertical distance), allowing users to see if a trend is moving "too fast" or "too slow" relative to its origin.
• Historical Analysis: By adjusting the "Historical Fans" setting, users can look back at previous pivot points to see how historical fans influenced subsequent price action.

Details

The script is based on the traditional Fibonacci Speed Resistance Fan drawing tool. It calculates the vertical distance (price) and horizontal distance (time) between two extreme pivot points.

• Construction: A trend line is drawn between a peak and a trough. Sequential lines are then projected from the origin point. The "Price" lines are determined by dividing the price range of the trendline by Fibonacci ratios, while "Time" lines divide the time duration.
• Zig Zag Integration: The script utilizes a Zig Zag algorithm (derived from built-in Auto Fib Retracement logic) to identify the pivots used for fan anchoring.
• Dynamic Grids: If the "Price Grid Lines" are extended, the tool effectively functions as an Auto Fibonacci Retracement alongside the fan, providing horizontal levels of interest.

Settings

• Deviation: A multiplier that defines how much price must move away from a pivot to confirm a new trend high or low.
• Depth: The minimum number of bars required between pivots to be considered for fan calculation.
• Historical Fans: Determines which previous pivot set to anchor the fan to (0 represents the most recent).
• Second Fib Speed Resistance Fan: An experimental toggle to plot an additional alternative fan for comparison.
• Reverse Fan Levels: Flips the order of the Fibonacci levels within the fan.
• Grid Settings: Options to toggle the central grid, adjust line colors, widths, and styles (Solid, Dashed, Dotted).
• Price/Time Level Groups: Individual toggles for specific Fibonacci ratios (0.25, 0.382, 0.5, 0.618, 0.75, etc.), allowing customization of visibility, color, and line weight.

FAQ

How do I interpret the fan lines? Lines above the price trend typically represent resistance, while lines below represent support. If price breaks a speed line, it often indicates a change in trend velocity toward the next level.

Can I use this for intraday trading? Yes, the indicator adjusts to any timeframe. On lower timeframes, you may need to increase the "Depth" or "Deviation" to filter out market noise.

How do I get access to this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.