SmartBreak Fibo

The SmartBreak Fibo indicator identifies real-time market structure breaks to automatically project Fibonacci-based trade setups including entry, stop-loss, and three take-profit targets. This tool eliminates manual drawing by anchoring Fibonacci levels to structural swings immediately upon a Break of Structure (BOS) or Change of Character (CHoCH).

Usage

The Usage section describes how the script can be used to automate technical analysis. The indicator monitors price action for structural shifts and generates a visual trade plan when specific conditions are met.

• Trade Plan Mapping: When a structural break is detected, the script anchors a Fibonacci retracement from the broken swing (Level 1) to the opposing swing (Level 0).
• Automated Levels: By default, the entry is set at the 0.618 retracement, the Stop-Loss is placed at the swing extreme (Level 0), and three take-profit targets are projected at the 2.0, 2.618, and 3.618 Fibonacci extensions.
• Visual Zones: The tool renders a green box to represent the profit zone (Entry to TP3) and a red box for the risk zone (Entry to SL), allowing for instant risk-reward assessment.
• Trend vs. Reversal: Users can toggle "ChoCh only" mode to focus exclusively on trend reversals, or leave it off to include BOS setups for trend continuation.

Details

The SmartBreak Fibo utilizes a market-structure engine to classify swing highs and lows. It tracks "Pivot Periods" to define the sensitivity of these swings; a higher period filters out minor price noise to focus on major structural shifts.

The logic is based on the relationship between price breaks and retracements. By automatically calculating extensions, it provides mechanical targets based on the magnitude of the preceding move. The market-structure logic (ZigZag and swing classification) is based on the open-source work of TFlab, while the Fibonacci trade-box system was developed by TraderHook.

Settings

Logic & View

• Pivot Period: Determines the sensitivity for detecting swing highs and lows. Higher values focus on larger, more significant market structures.
• Show Zig Zag Line: Toggles the visibility of the underlying ZigZag lines connecting swings.
• Show Labels: Displays "BOS" or "CHoCH" labels at the point of the structural break.
• Show Position Type: Adds a header to the boxes indicating the side (Long/Short) and break type.

Fibonacci Setup

• Entry / TP1 / TP2 / TP3: Allows for manual adjustment of the specific Fibonacci levels used for entry and all three take-profit targets.

Box Display

• Number of recent setups to show: Controls how many historical trade boxes remain on the chart (1–100).
• Box length: Sets the horizontal length of the trade boxes in bars.
• Long / Short setups: Toggles visibility for bullish or bearish setups independently.
• TP/SL/Entry lines: Toggles the dashed lines and price labels for each trade level.
• ChoCh only: When enabled, the script ignores BOS (continuation) and only plots setups on CHoCH (reversal) signals.

FAQ

How do I use the different Fibonacci levels for my strategy? You can customize the Entry, TP1, TP2, and TP3 levels in the Settings menu under the "Fibo Setup" group to align with your specific trading plan or backtested results.

What is the difference between BOS and CHoCH in this indicator? A BOS (Break of Structure) typically indicates trend continuation, whereas a CHoCH (Change of Character) suggests a potential trend reversal. The indicator identifies both but allows you to filter for only CHoCH setups if desired.

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