Fibonacci Time Moving Average Ribbons

The Fibonacci Time Moving Average Ribbons indicator projects a chosen moving average into the future using Fibonacci numbers to create a time-based ribbon for trend visualization.

Usage

The Usage section describes how the script can be used to identify trend momentum and potential support/resistance zones. Users can observe the expansion and contraction of the ribbons to gauge market volatility and trend strength.

• Trend Identification: When the ribbons are fanned out and the price is above the "Source MA" (the primary line), the trend is typically considered bullish. Conversely, when the ribbons fan out below the price, a bearish trend is indicated.
• Momentum Analysis: The bar coloring feature provides immediate feedback on momentum. Strong green bars suggest high bullish momentum, while bright red bars suggest high bearish momentum. Dimmer colors indicate weakening momentum within the trend.
• Dynamic Support/Resistance: The offset ribbons can act as historical reference points that may serve as dynamic zones where price action reacts.

Details

The script calculates a single moving average based on user inputs and then plots multiple instances of that same calculation, each shifted forward in time by a specific Fibonacci number. The offsets used are 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and 144.

By shifting the average calculation into the future, the tool creates a "ribbon" effect that represents where the average price was at various Fibonacci-sequenced intervals. This implementation supports 12 different moving average types, including advanced adaptive filters like Kaufman's Adaptive Moving Average (KAMA) and Fractal Adaptive Moving Average (FRAMA), allowing the tool to be tuned for either high responsiveness or significant smoothing.

Settings

• Source: Determines the price data used for the moving average calculation (e.g., close, open, hlc3).
• Sampling Period: The lookback length used for the moving average calculation.
• Moving Average Type: Selects the calculation method (EMA, DEMA, SMA, SMMA, WMA, VWMA, ALMA, HULLMA, LSMA, COVWMA, FRAMA, or KAMA).
• Number of Fibonacci Offsets: Controls how many Fibonacci-shifted ribbons are displayed (up to 11).
• Volume Type: Specifies whether to use standard volume or tick-based volume for the VWMA calculation.
• Offset (LSMA): Specific adjustment parameter for the Least Squares Moving Average.
• ALMA Settings (Offset/Sigma): Controls the distribution and smoothness of the Arnaud Legoux Moving Average.
• Coefficient (FRAMA): The exponent used for the Fractal Adaptive Moving Average calculation.
• KAMA Smoothing (Fast/Slow): Defines the smoothing constants for the fast and slow ends of the Kaufman's Adaptive Moving Average.

FAQ

What moving averages are available in this tool? The tool includes 12 types: EMA, DEMA, SMA, SMMA, WMA, VWMA, ALMA, Hull MA, LSMA, COVWMA, FRAMA, and KAMA.

How do the Fibonacci offsets affect the chart? Each ribbon represents the moving average shifted forward by a Fibonacci number of bars, creating a visual cloud that represents historical average prices projected onto current timeframes.

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