TradeChartist ZigZag & Auto Fibonacci Retracement

19 août 2021

™TradeChartist ZigZag & Auto Fibonacci Retracement is a visually engaging script that generates ZigZag and Auto-Fibonacci lines/labels based on user defined sensitivity factor.

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█ ™TradeChartist ZigZag & Auto Fibonacci Retracement Features
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• Plots completed and developing ZigZag based on 𝐙𝐢𝐠𝐙𝐚𝐠/𝐀𝐮𝐭𝐨-𝐅𝐢𝐛𝐬 𝐅𝐚𝐜𝐭𝐨𝐫 (Minimum - 1, Maximum - 10, Default - 5) that adjusts the sensitivity of the ZigZag with 1 being High Sensitivity and 10 being Low Sensitivity.

• Option to enable or disable 𝐙𝐢𝐠𝐙𝐚𝐠 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐨𝐫 which can be helpful for Harmonic traders.

• Option to display 𝐙𝐢𝐠𝐙𝐚𝐠 𝐇𝐢𝐠𝐡𝐬/𝐋𝐨𝐰𝐬 and 𝐑𝐒𝐈 𝐚𝐭 𝐇𝐢𝐠𝐡𝐬/𝐋𝐨𝐰𝐬 in one of two styles.

• Two types of Fibonacci to choose from - 𝐀𝐮𝐭𝐨-𝐅𝐢𝐛𝐬 and 𝐅𝐢𝐛𝐬 𝐛𝐚𝐬𝐞𝐝 𝐨𝐧 𝐋𝐨𝐨𝐤𝐛𝐚𝐜𝐤.

• 𝐀𝐮𝐭𝐨-𝐅𝐢𝐛𝐬 option plots Auto Fibonacci levels based on 𝐙𝐢𝐠𝐙𝐚𝐠/𝐀𝐮𝐭𝐨-𝐅𝐢𝐛𝐬 𝐅𝐚𝐜𝐭𝐨𝐫.

• 𝐅𝐢𝐛𝐬 𝐛𝐚𝐬𝐞𝐝 𝐨𝐧 𝐋𝐨𝐨𝐤𝐛𝐚𝐜𝐤 plots Fibonacci levels based on the highest high and lowest low of the lookback period (𝐃𝐚𝐲𝐬 or 𝐂𝐚𝐧𝐝𝐥𝐞𝐬).

• Fibonacci levels can be reversed by enabling 𝐑𝐞𝐯𝐞𝐫𝐬𝐞 from settings.

• Enabling 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐏𝐫𝐢𝐜𝐞 𝐅𝐢𝐛 𝐋𝐚𝐛𝐞𝐥 displays the current Fib level of the developing price bar.

• Option to customize Fib levels and colours.

• 4 Colour themes and option to enable/disable bar colouring.

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█ Example charts

1. ZigZag/AutoFibs Factor can make a big difference to ZigZag and AutoFibs plot as shown in the XAUUSD Daily chart below.



2. RSI can be quite useful in analysing the Highs and Lows as shown in the BTCUSDT 1hr chart below.



3. Developing or Current Trend means the Low/High is unconfirmed and can move as shown in the EURUSD 1hr chart below with bar colouring.



4. Current Price Fib Level label showing PTC means Potential Trend Change. Confirmation at candle close will reverse the Auto-Fibs as shown in ETHUSDT 15m chart below





5. Fibonaci Levels and colours can be customised using 𝐔𝐬𝐞 𝐂𝐮𝐬𝐭𝐨𝐦 𝐅𝐢𝐛 𝐋𝐞𝐯𝐞𝐥𝐬 from the settings as shown in the SPY 15m chart below



█ Note:

• Rarely, a steep high/low wick doesn't get accounted in the ZigZag High/Low detection as they are filtered using momentum.

• If momentum doesn't slow down, the fibs can extend beyond 1 and may continue way beyond 4.618 fib level. These are quite rare depending on how distant the near high/low is based.

• ZigZag and Fibonacci are good reference indicators and should always be used as confirmations rather than standalone indicators.

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Best Practice: Test with different settings first using Paper Trades before trading with real money

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