Fibonacci Levels Based on Supertrend

The Fibonacci Levels Based on Supertrend indicator is a trend-following tool that combines the Supertrend mechanism with Fibonacci retracement and extension levels to assist in trade management and risk reduction. By calculating levels relative to the current and previous Supertrend lines, it provides traders with dynamic price targets and support/resistance zones within an established trend.

Usage

The indicator provides a structured way to manage trades once a trend is identified:

• Trend Identification: The core Supertrend line defines the primary trend direction (bullish or bearish).
• Target Setting: Fibonacci extension levels (e.g., 1.618, 2.618) can be used as potential take-profit targets in the direction of the trend.
• Risk Management: The retracement levels (e.g., 0.382, 0.618) help identify areas where price might pull back before continuing its move, allowing for better stop-loss placement or entry refinement.
• Run-Up Statistics: Use the historical statistics table to monitor how often price reaches specific Fibonacci levels during a trend's lifespan.

Details

The script operates by measuring the distance between the current Supertrend line (defined as the 0% level) and the previous Supertrend line that was recently broken (defined as the 100% level). This range creates the basis for the Fibonacci sequence. Unlike static Fibonacci tools, these levels are dynamic and update automatically as the Supertrend shifts, ensuring the levels remain relevant to the most recent market volatility and price structure.

Settings

Supertrend

• ATR Length: The lookback period used for the Average True Range calculation.
• Factor: The multiplier applied to the ATR to determine the distance of the Supertrend line from the price.
• Show Supertrend Line?: Toggles the visibility of the primary Supertrend line.

Fibonacci Run-Up Historical Statistics Table

• RunUp Statistics Table Location: Determines where the performance table is displayed on the chart.
• Title/Cell Color: Customizes the visual appearance of the statistics table.

Line & Label Style

• Lines: Controls the extension behavior (Right, Left, Both, or None) of the Fibonacci level lines.
• Line Style/Size: Customizes the visual weight and pattern (Solid, Dashed, Dotted) of the levels.
• Labels: Configures the position and formatting of the level descriptions (Percent, Value, or Price).

Fibonacci Levels

• Apply Fibonacci Levels to ONLY Last Supertrend Direction: When enabled, the indicator only draws levels for the most recent trend signal.
• Apply Fibonacci Levels After Confirmed Signal: Restricts level calculation until the trend change is confirmed on candle close.
• Background/Line Transparency: Adjusts the opacity of the level fills and lines.
• Level Toggles: Each Fibonacci level (from 0.0 to 4.764) can be individually enabled, value-adjusted, and color-coded.

FAQ

How do I use this indicator to set stop losses? Traders often use the Supertrend line itself or the 0.236/0.382 Fibonacci retracement levels as trailing stop-loss markers depending on their risk appetite.

Can I customize the Fibonacci ratios? Yes, the settings menu allows you to manually change the values for 24 different levels to suit your specific strategy.

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