Dual Dynamic Fibonacci Retracement — Long and Short Duration

The Dual Dynamic Fibonacci Retracement — Long and Short Duration indicator identifies and plots two separate sets of Fibonacci levels based on different lookback periods to provide a comprehensive view of market trends and near-term fluctuations. This tool helps traders analyze broad trends alongside granular price action by dynamically adjusting levels based on the market's position relative to pivot midpoints.

Usage

The tool can be used to identify potential support and resistance levels across different time horizons simultaneously. For example, a trader might use the primary set with a long lookback (e.g., 50 bars) to find major reversal zones, while enabling the second set with a shorter lookback (e.g., 14 bars) to time entries on smaller pullbacks.

The indicator automatically detects the highest high and lowest low within the selected lookback periods. If the current price is above the midpoint of these pivots, the Fibonacci levels are calculated from top to bottom (retracement of an uptrend). If below, they are calculated from bottom to top. This ensures the retracement levels always align with the prevailing directional bias within that specific lookback window.

Details

The script utilizes ta.highest() and ta.lowest() to determine the boundaries for Fibonacci calculations. Unlike static drawing tools, these levels update automatically as new price extremes are reached, ensuring the chart remains current. The "Shift" and "Extend" features use bar-index offsets to move the horizontal lines horizontally, allowing users to clear the immediate price action or project levels into the future.

Settings

Primary Fibonacci Set

• Lookback Period: Sets the number of bars used to find the highest and lowest points for the main Fibonacci levels.
• Left Line Shift: Adjusts the starting point of the levels left (negative) or right (positive).
• Right Line Shift: Adjusts the ending point/extension of the levels left or right.
• Plot 0.114 and 0.886 levels?: Toggles the visibility of deep retracement and early breakout levels.

Secondary Fibonacci Set

• Plot second set of levels?: Enables or disables the second independent set of Fibonacci retracements.
• Lookback Period 2: Sets the lookback length for the secondary set.
• Second Left Line Shift: Adjusts the horizontal start of the second set.
• Second Right Line Shift: Adjusts the horizontal end of the second set.
• Plot 0.114 and 0.886 levels for second set?: Toggles the extra levels for the secondary calculation.

FAQ

How do I access Dual Dynamic Fibonacci Retracement — Long and Short Duration?

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

Can I use this for day trading?

Yes, by setting shorter lookback periods (e.g., 10-20), the indicator will focus on intraday volatility and immediate price pivots.

Why do the lines disappear and reappear?

The indicator is designed to maintain a clean visualization. It updates the lines whenever a new high or low is detected within your specified lookback window to ensure the retracement levels are always based on the most relevant data points.