The indicator draws real-time ranges based on Fibonacci ratios as well as retracements. Breakouts from a Fibonacci Channel are also indicated by labels, indicating a potential reversal.
Each range extremity/area can also be used as support/resistance.
- Fibonacci Channels
- Latest Fibonacci
Both, Latest Fibonacci and Fibonacci Channels, display different Fibonacci levels (labels not included in the code):
However, the 2 react in a totally different way.
🔹 Fibonacci Channels
2 conditions must be fulfilled until a Fibonacci Channel is displayed:
- New swing high/low
- close has to be between chosen limits/levels (Break level)
As visual guidance, chosen Break levels are accentuated by 2 small gray blocks:
Once the channel is displayed, it will remain visible until x consecutive bars break out of the chosen Break level at closing time.
• x consecutive bars is set by Break count.
The amount of breaks is counted in the code. When the price, without breaking the user-set limit, closes back between the 2 levels, the count is reset to 0.
By enabling Channels and Shadows you can see previous channels ("Shadows", which is always delayed with 1 bar)
Previous channels can be helpful in finding potential support/resistance areas, especially from large channel blocks
The more narrow Break levels are set the less chance the price closes between these 2 levels, and the quicker close breaks out.
In other words, narrow levels give fewer & smaller channels, broader levels give more & larger channels.
• swing settings: L & R
• Break count (x consecutive bars that close outside chosen levels to invalidate the Fibonacci Channel)
will also be of influence in displaying the channels.
• Show breaks enable you to visualize signals when there is a break:
• Alerts can also be set (Break Down/Break Up)
🔹 Latest Fibonacci
This displays the Fibonacci levels between the latest swing high and swing low, independently from the Fibonacci Channel.
The Lastest Fibonacci can be helpful in detecting the current trend against the larger Fibonacci Channel.
🔹 Swing Settings
🔹 Fibonacci Channels
- Channel: Channel / Channels + Shadows / None
- Break level
-0.382 - 1.382
0.000 - 1.000
0.236 - 0.764
0.382 - 0.618
- Break count
- Colours: [-0.382 - 0], [0.236 - 0.382], [0.5], [0.618 - 0.764], [1 - 1.382]
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All scripts & content provided by LuxAlgo are for informational & educational purposes only. Past performance does not guarantee future results.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.