Adaptive Fibonacci Compass

The Adaptive Fibonacci Compass indicator provides a dynamic, pivot-anchored Fibonacci retracement and extension system designed to identify key market structure levels automatically. By algorithmically detecting the most recent significant swing points and grading them based on ATR-normalized strength, the tool eliminates the subjectivity inherent in manual Fibonacci drawing, ensuring the grid remains aligned with current market context.

Usage

The Adaptive Fibonacci Compass can be applied to any liquid market and timeframe to identify potential reversal and continuation zones.

• Optimal Trade Entry (OTE) Zones: The tool highlights two primary fill zones (0.382–0.618 and 0.618–0.786). In a bullish structure, traders can look for price to pull back into the teal-shaded 0.382–0.618 zone for high-probability long entries.
• Structural Context: Use the automatic BOS (Break of Structure) and CHoCH (Change of Character) labels to determine the prevailing trend direction. A bullish grid is anchored when an upward BOS is detected, while a bearish grid is anchored following a downward BOS.
• Dynamic Updating: The grid automatically refreshes when a new, stronger pivot pair forms. This ensures that the Fibonacci levels are always calculated from the most relevant recent swing highs and lows without manual intervention.

Details

The indicator utilizes ta.pivothigh() and ta.pivotlow() with configurable confirmation windows to identify swing points. To filter out market noise, it calculates an "ATR Strength" score for each pivot: Strength = (Pivot High - Pivot Low) / ATR(14) Only swings that meet the user-defined minimum ATR strength threshold are used as anchors for the Fibonacci grid. The script employs a delete-before-create pattern at the last bar to ensure a clean visual output without ghosting artifacts.

Settings

Pivot Settings

• Pivot Left/Right Bars: Sets the number of bars required on the left and right to confirm a swing pivot.
• Strong Pivot (ATR x): The multiplier used to determine if a swing is significant enough to be labeled as a "Strong" pivot.
• Min Swing (ATR x): The minimum price distance a swing must cover (relative to ATR) to be considered for anchoring.

Fibonacci Grid

• Show Fibonacci Grid: Toggles the visibility of the seven standard retracement levels.
• Show OTE Zones: Toggles the shaded Optimal Trade Entry boxes.
• Show Extension Levels: Toggles visibility for the 1.272 and 1.618 extension levels.
• Grid Extension (bars): Determines how many bars into the future the Fibonacci lines extend.

Structure

• Show BOS / CHoCH: Displays labels for Breaks of Structure and Changes of Character.
• Show HH/HL/LH/LL: Toggles labels for Higher Highs, Higher Lows, Lower Highs, and Lower Lows.
• Show Live Pivot Extreme: Displays a dashed line at the current pending swing extreme.

FAQ

How do I access the Adaptive Fibonacci Compass?

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

Why did the Fibonacci grid suddenly jump to a new position?

The grid is dynamic; it anchors to the most recent qualifying pivot pair. If a new swing forms that is stronger (based on ATR) than the previous anchor, the indicator will automatically reset the grid to the more relevant structure.

Does this indicator repaint?

No. Pivots are only confirmed and drawn after the "Pivot Right Bars" period has fully elapsed. The Fibonacci grid is built using confirmed historical data, ensuring that levels remain fixed once the confirmation window is closed.