Dual Dynamic Fibonacci Grouped Averages with Color Change
Red Bearish Green Bullish
Using grouped fib averages, works similar to SMA
Using grouped fib averages, works similar to SMA
Release Notes:
This indicator dynamically calculates and plots two separate lines on a trading chart, each representing a unique Fibonacci Grouped Average. These lines are designed to provide insights into market trends and potential support or resistance levels based on Fibonacci sequences.
Key Components
Fibonacci Sequence Calculation:
The indicator generates Fibonacci sequences dynamically.
Two separate Fibonacci sequences are calculated based on user-defined lengths, influencing the averaging mechanism of each line.
Dynamic Grouped Averages:
It computes two separate averages (Line 1 and Line 2), where each average is based on grouping segments of closing prices.
The length of these segments is dictated by the values in the corresponding Fibonacci sequence.
Adaptive Coloring Logic:
Line 1 (Indicator Line) and Line 2 (Base Line) change colors based on specific conditions related to their values and the current market high.
Line 1 becomes red if Line 2 is above the current high price of the asset, indicating a potential overbought condition or a strong upward trend.
Line 2 turns red when its value is above the current high, similarly indicating strong bullish momentum or overbought conditions.
Use Cases
Trend Analysis: By observing the behavior and positioning of the Fibonacci Grouped Averages, traders can gauge the strength and direction of market trends.
Support and Resistance: The levels indicated by the lines might act as dynamic support or resistance levels, informing traders about potential reversal points.
Market Sentiment: The color changes, especially when one or both lines are above the current high, can indicate heightened market activity or sentiment, prompting a more cautious or opportunistic trading approach.
User Inputs
Users can customize the lengths of the Fibonacci sequences for both lines, allowing for flexibility and adaptation to different trading styles or asset behaviors.
Conclusion
This indicator is a powerful tool for traders who rely on Fibonacci analysis and trend tracking. Its dynamic calculation and adaptive color-coding provide a visually intuitive and analytically rich perspective on market behavior, making it a valuable addition to a trader's toolkit.
Key Components
Fibonacci Sequence Calculation:
The indicator generates Fibonacci sequences dynamically.
Two separate Fibonacci sequences are calculated based on user-defined lengths, influencing the averaging mechanism of each line.
Dynamic Grouped Averages:
It computes two separate averages (Line 1 and Line 2), where each average is based on grouping segments of closing prices.
The length of these segments is dictated by the values in the corresponding Fibonacci sequence.
Adaptive Coloring Logic:
Line 1 (Indicator Line) and Line 2 (Base Line) change colors based on specific conditions related to their values and the current market high.
Line 1 becomes red if Line 2 is above the current high price of the asset, indicating a potential overbought condition or a strong upward trend.
Line 2 turns red when its value is above the current high, similarly indicating strong bullish momentum or overbought conditions.
Use Cases
Trend Analysis: By observing the behavior and positioning of the Fibonacci Grouped Averages, traders can gauge the strength and direction of market trends.
Support and Resistance: The levels indicated by the lines might act as dynamic support or resistance levels, informing traders about potential reversal points.
Market Sentiment: The color changes, especially when one or both lines are above the current high, can indicate heightened market activity or sentiment, prompting a more cautious or opportunistic trading approach.
User Inputs
Users can customize the lengths of the Fibonacci sequences for both lines, allowing for flexibility and adaptation to different trading styles or asset behaviors.
Conclusion
This indicator is a powerful tool for traders who rely on Fibonacci analysis and trend tracking. Its dynamic calculation and adaptive color-coding provide a visually intuitive and analytically rich perspective on market behavior, making it a valuable addition to a trader's toolkit.
Release Notes:
Adding yellow as failing upward trend indication