[astropark] Auto Fibonacci Retracement Extension

15 nov. 2020

Dear followers,

today a new analysis tool for day trading, scalping and swing trading: Automatic Fibonacci Retracements and Extensions drawer!
It works on every timeframe and market, as it simply draws automatically most important fibonacci levels on the chart.

Based on the analysis window set (default 100 bars, but you can edit it as you like), it finds recent high and low and start drawing the following levels:

• recent high and low (black)
  
• golden retracement range: 0.5 * 0.618 * 0.705 fibonacci retracements (gold)
  
• fibonacci extensions range above 1: 1.272 * 1.424 * 1.618 * 2.618 * 4.236 (blue)
  
• fibonacci extensions range below 0: -0.238 * -0.618 * -0.706 * -1(fuchsia)
  

Whenever the indicator finds a new high or a new low, al fibonacci levels are re-draw automatically.

The indicator will let you:

• change analysis window
  
• enable displaying labels related to current fibonacci levels and/or prices
  
• change colors
  
• show/hide each specific level
  

How to use the indicator?

Basically, all techniques which apply to fibonacci tool are valid here too.

After a big move up or down, a new high or low is created and a retracement is expected: if trend is strong, retracement to golden ration 0.618 will be a perfect spot for buy or sell respectively in order to continue riding the trend.
In general a bounce is always expected when price hit 0.618 retracement, good to know for scalping traders, while swing trades will continue holding the trade for higher profits.

If the golden retracement range (0.5 - 0.705) is broken and then retested from the other side, a continuation move is expected towards previous high/low (fib level 1) and even more towards the fibonacci extensions range above 1 (1.618 - 2.618 - 4.236).
If the base of bounce and trend continuation on golden retracement range, traders can expect

• price to hit again previous high/low and
  
• if trend is strong, a consolidation near the previous high/low range (conditions that are respectively bullish and bearish)
  
• do a further continuation towards -0.618 fib level range
  

Traders must always understand that

• the higher the timeframe, the stronger is the meaning and so the reaction when a specific fibonacci level is hit
  
• don't trade blindly, try to find confluences to have an higher chance to be in a winning trade in near future
  
• money and risk management are very important, so manage your position size and always have a stop loss in your trades
  

As said, this indicators work on every timeframe and in all markets (Crypto currencies, stocks, FOREX, indexes, commodities). Here some examples:

BTCUSDT 1D: after a long run, a retracement is expected and a bounce at 0.618 golden level is more than obvious: perfect short (sell) entry


BTCUSDT 1D: again as previous example, after a long run, a retracement is expected as well as price's bounces back above


EURUSD 1h: lots of info here, directly in the chart below:

• bounces on 0.618 golden zone
  
• double top
  
• price breaks 0.618 level and retests it from below targeting previous low
  
• double bottom and bounce back towards golden zone
  
• bearish consolidation at recent low and further decline towards 1.618 fib extension
  

AMZN 1h stock: lots of info here too, directly in the chart below:

• new high is print, price retrace to golden zone
  
• bounces on 0.618 golden zone
  
• price breaks 0.618 level and retests it from below targeting previous low
  
• double bottom and bounce back towards golden zone
  
• rejection at golden zone, price falling targeting previous low again and probably 1.618 fib extension
  
• price breaks hard previous low and hits fib extension range below recent low
  
• price retraces back up towards new golden retracement range
  
• golden retracement range is broken and used as support: targets are previous high and 1.618 extension
  
• once 1.618 extension level is broken and retested successfully as support, price moves towards 2.618 fibonacci extension level
  

SPY (SPX500) index: lots of info in the chart

• interesting to note that March 2020 huge dump can be totally mapped as a series of fibonacci level bounces, so you understand the importance of riding a trend now, right?
  
• after the low was formed, price retraced perfectly to golden ration 0.618
  
• each time price hit a golden level/range, it retraces creating double top and double bottom configurations too
  

In the chart below we can see the power of the double bottom at golden retracement level: targets are previous high and -0.618 fibonacci extension level


XAUUSD 15m: as we are in a lower timeframe, the default analysis windows has been reduced to 50.
What can we see here:

• golden retracement and price is rejected towards previous low
  
• golden retracement hit and price bounces back lower
  
• new high is formed: golden retracement hit and price bounces back higher
  
• price break previous high and hits fibonacci extensions -0.618 and -1
  
• price continues rising forming a regular bearish divergence with RSI
  
• once uptrend is broken, price falls dramatically
  
• first target is 0.618 retracement level, where you see a very small retracement due to strength of sellers
  
• second target is previous low, which is broken and retested many time from below (bearish retest)
  
• third target is fibonacci extension range (in this case 1.414 is almost hit)
  
• as an hidden bullish divergence with RSI was created, price goes back up
  

This is a premium indicator, so send me a private message in order to get access to this script.

23 déc. 2020

Notes de version

added resolution options to draw auto fibonacci levels by analyzing a different timeframe

25 mai 2022

Notes de version

small enhancements:

• added option to show only prices as labels for each fibonacci level plotted
  
• added inputs to enable/disable specific zone levels (imagine you only want to see golden retracement zone)
  
• enhanced input color choice