Fibonacci MAs

The Fibonacci MAs indicator provides a multi-layered analysis of price trends by plotting a series of moving averages with lengths based on the Fibonacci sequence. This tool allows traders to visualize support, resistance, and momentum across various time horizons simultaneously, culminating in an overall average line for trend bias detection.

Usage

The tool can be used to identify trend strength and potential reversal zones. When the price is trading above the cloud of Fibonacci MAs and the "Average Fibonacci of MAs Line," the market is generally considered to be in a bullish phase. Conversely, price action below these levels indicates bearish sentiment.

Traders can use the "Enable The First MA Lines Only" setting to limit the number of active MAs on the chart, helping to declutter the workspace while still maintaining the integrity of the average calculation. The average line serves as a dynamic "fair value" or pivot line; price crossovers above or below this line can trigger alerts for potential entries or exits.

Details

The script utilizes the Fibonacci sequence (2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181) as the default lookback periods for seventeen different moving averages. Users can select from various MA types, including SMA, EMA, WMA, HMA, VWMA, SMMA, and DEMA.

A unique feature of this script is the calculation of an aggregate average line. This line is the mean value of all currently active Fibonacci MAs, providing a smoothed representation of the combined trend data.

Settings

• Fibonacci Moving Average Type: Selects the mathematical method used for all MAs (e.g., Simple, Exponential, Hull, etc.).
• Moving Average Source: Determines the price data used for calculations (default is Close).
• Enable The First MA Lines Only: A filter to limit how many of the 17 possible MAs are displayed on the chart.
• Moving Averages Group:
  • Length: Individual inputs to manually override the Fibonacci sequence values.
  • Color: Custom color pickers for each MA line.
  • Visibility Toggle: A checkbox to show or hide a specific line while still including it in the aggregate average calculation.
• Show Average Fibonacci of MAs Line: Toggles the visibility and color of the aggregate average plot.

FAQ

How do I use the individual Fibonacci lines?

The individual lines act as a ribbon. When they expand, it indicates strong momentum; when they contract or "squeeze," it often precedes a significant breakout.

Can I change the type of Moving Average?

Yes, you can choose between 7 different types, including SMA, EMA, WMA, HMA, VWMA, SMMA, and DEMA, in the settings menu.

How can I access Fibonacci MAs?

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