Auto Fibonacci

The Auto Fibonacci indicator automatically identifies significant high and low points over a user-defined period to plot dynamic Fibonacci retracement and extension levels. It provides traders with essential price targets and support/resistance zones without the need for manual drawing.

Usage

The indicator can be used to identify potential reversal zones and price targets based on Fibonacci ratios. When a new high or low is formed within the specified lookback period, the tool re-calculates the levels automatically.

• Retracements: Use the 0.236, 0.382, 0.5, 0.618, and 0.786 levels to find potential support in an uptrend or resistance in a downtrend.
• Extensions: The 1.618 level can be toggled on to serve as a primary profit target or extended resistance/support level.
• Trend Identification: The script labels the absolute "High" and "Low" points within the period and colors the levels based on whether the high or low occurred most recently, helping to visualize current market sentiment.

Details

The script functions by scanning a specific lookback window (Fibo Period) to find the highest and lowest price points. It then determines the sequence of these points:

• If the high occurred before the low, it calculates levels for a potential upward move.
• If the low occurred before the high, it calculates levels for a potential downward move. The levels are projected forward from the most recent bar to provide a clean, uncluttered view of current price action relative to the Fibonacci grid.

Settings

• Fibo Period: Determines the lookback window (number of bars) used to find the highest high and lowest low.
• Plot 1.618 Level?: A toggle to enable or disable the display of the 1.618 Fibonacci extension level.

FAQ

How do I use the Auto Fibonacci levels for entries?

Traders often look for price exhaustion or candlestick reversal patterns near the 0.5 or 0.618 "Golden Pocket" levels to find high-probability entry points.

Can I change the lookback period?

Yes, you can adjust the "Fibo Period" in the settings. A larger period will identify long-term structural levels, while a smaller period will capture short-term price fluctuations.

How can I access this indicator?

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