Yesterday i got into a discussion on the merits and arbitrary nature of Fibonacci Retracement. I believed that Phi was in fact an arbitrary basis and that any prediction it made was at best a self fulfilling prophecy.
The three indicator inputs are
1. The number candles to use in detecting pivot points 2. Fib0 3. Fib100
The Indicator looks for high and low pivot points that indicate reversals in the market by looking at the # of Candles we specified in 1. in both directions We then calculate the distance between that reversals directional maximum and the nearest Fibonacci Retracement line. We plot that distance in % of the entire Fibonacci Retracement Range.
keep in mind that the maximum distance to a fib line is distance(FibX,FibX+1)/2 which is 10.1166666667 on average
So if the Indicator shows a fault of 2% it is a relative fault of 19.77%
You can look at the results and judge for yourself.
Comment
⋅
I added the indicator to the public library so you can test it out yourself.
Thank you and I would like to know if it is possible to place an alert on it for the green or red cross appearance.
LearnerPriceAction
⋅
Thank you and would you kindly let me know how to interpret this pivot distribution graph
kaizen_usa
⋅
@LearnerPriceAction, His coding showing reds to buy from bottom and green on top .. i changed it to green for bottom to buy and red on top to sell.. and this coding is pretty accurate it predicts the trend way before the psar and other ema's. i kinda like it.