[MTXTrades] Moving Fibonacci Overlay

Overview



Moving Fibonacci Overlay is a technical analysis indicator that automates Fibonacci swing detection and adds optional volatility and trend filters on top of a Golden Zone pullback area. It is designed for discretionary traders who want a rules based way to display dynamic Fibonacci levels, highlight a 38.2–61.8 retracement zone, and mark candles that meet user defined structure, ATR, and moving average conditions.

Unlike generic Fibonacci overlays or simple indicator mashups, MFO uses a single, integrated logic path: the same swing engine that defines the Golden Zone also drives the ATR and trend checks, so every signal is tied back to the current active structure. This version introduces a proprietary Swing Strength Scoring System and an Adaptive Volatility Gate, which differentiate it from typical static tools by algorithmically filtering weak structures and adjusting to market noise in real time.


What the indicator plots

• A dynamic swing high and low, selected via a quality-scoring algorithm (volume, size, persistence) or a fixed lookback window.
• A full Fibonacci ladder between the active swing points (0, 23.6, 38.2, 50, 61.8, 78.6, 100).
• A shaded Golden Zone between the 38.2 and 61.8 retracements, using a gradient centered around the 50 level.
• Optional dual moving averages (fast and slow) that define a bullish or bearish “stack” when enabled.
• Optional BUY/SELL labels when a candle meets the Golden Zone, Adaptive ATR filter, and trend filter conditions at the same time.
• An on chart dashboard that summarizes swing mode, trend status, swing quality score, current ATR mode (Fixed vs. Adaptive), and signal status.

How it works



Structure layer – Swing Strength Scoring:

• When Dynamic Swing Detection is enabled, the script does not just accept every pivot. It calculates a Swing Quality Score (0-100) for each new pivot based on:
• Volume participation relative to the recent average.
• ATR-normalized swing size (larger relative moves score higher).
• MA Distance (distance from the trend stack).
• Persistence (how long the level held).
• Only pivots that meet the user-defined Minimum Swing Quality Score update the active Fibonacci levels, ensuring the Golden Zone is anchored to significant market structures.

Volatility layer – Adaptive ATR Gate:

• The script monitors the ratio of short-term ATR (14) to long-term ATR (50) to detect volatility regimes.
• Expanding Volatility: When the ratio is high (>1.2), the filter automatically tightens (requiring a larger candle range) to prevent false breakout signals in choppy conditions.
• Contracting Volatility: When the ratio is low (<0.8), the filter relaxes to remain sensitive to new trend moves.
• Users can toggle this "Adaptive ATR Threshold" or use a fixed multiplier.

Trend layer – Dual MA Stack:

• The indicator calculates two moving averages (fast and slow) using a user selected MA type and length.
• An optional separate MA Timeframe input lets these MAs be computed on another timeframe for multi timeframe confirmation.
• Signals are only valid if price and MAs are stacked in the trade direction (Price > Fast > Slow for bulls).

Signal logic – Golden Zone bounces:

• A bullish candidate bar is one where the low trades into the Golden Zone and the candle closes bullish (optionally requiring a color change).
• A valid signal requires:
1. Structure: Price interacts with the Golden Zone of a validated (high-score) swing.
2. Volatility: Candle range passes the Adaptive ATR threshold.
3. Trend: Price is aligned with the MA stack.
• When all conditions are met, a "BUY" or "SELL" label appears.

Inputs and usage notes

Detection settings:

• Use Dynamic Swing Detection: Switch between scored pivots and fixed lookback.
• Minimum Swing Quality Score: The threshold (0-100) a pivot must reach to be considered a valid swing anchor.
• Pivot Strength Bars: Controls how many bars confirm a pivot.

Signal & volatility settings:

• Use Adaptive ATR Threshold: Enables the auto-adjusting volatility filter logic.
• Base ATR Multiplier: The baseline multiplier used when volatility is normal (adjusted up/down in adaptive mode).
• Show Bounce Signals: Enable or disable Golden Zone BUY/SELL markers.

Dashboard & visuals:

• Show Info Panel: Toggles the dashboard displaying Swing Quality Score, ATR Mode, and other stats.
• Color inputs: Customize Golden Zone shading, signals, and dashboard elements.

What makes it original

Moving Fibonacci Overlay is not just a visual Fibonacci tool; it integrates two proprietary mechanisms that justify its closed-source nature:

1. Swing Strength Scoring System: Unlike standard indicators that use every raw pivot, MFO evaluates the quality of market structure using a weighted scoring algorithm (Volume + ATR Size + MA Distance). This ensures the Golden Zone is only drawn on high-conviction swings, a logic unique to this script.
2. Adaptive Volatility Engine: The ATR filter is not static; it algorithmically adjusts its sensitivity based on the ATR(14)/ATR(50) ratio. This creates a self-regulating noise filter that tightens during volatility expansion and relaxes during contraction, providing a dynamic behavior not available in standard "ATR filter" scripts.

This combination produces a rules based, adaptive continuation framework that offers clear value over simple indicator combinations.

Timeframes, markets, and usage

The indicator is compatible with any TradingView asset class (crypto, forex, indices, stocks, futures) and works on intraday or higher timeframes. Traders can use the Swing Score to filter market conditions and the Adaptive ATR to gauge volatility regimes. It is intended as a decision support tool, not a complete trading system.

Disclaimer

This script is a technical analysis tool for visualizing Fibonacci swings and volatility conditions. It does not provide financial advice and does not guarantee any specific trading results; users should apply their own judgment and risk management when using the indicator.