The "Fibonacci Ranges" indicator combines Fibonacci ratio-derived ranges (channels), together with a Fibonacci pattern of the latest swing high/low.
🔶 USAGE
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.
🔶 CONCEPTS
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.
Note:
• 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.
Thank you very much. Nice tool. If I can suggest new project idea, we need heatmap liquidity tool please. I think it will be a nice project for your master team
@alexgrover, Thanks. these scripts are very good but I was thinking more of tools like bookmap or hyblockcapital. My goal is not to promote these sites. just give examples. I don't know if it's possible to code this here but in any case I would appreciate being able to use it directly on tradingview
LuxAlgo
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@BlackMamba23, Thanks for the suggestions, we'll look into it. Let us know if you have any more details here
HomelessToRich
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@LuxAlgo, thank you very much for your assistance. I sent you a private message to try to give you some details. If I can help you in your research do not hesitate
ACryptoMore
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It would be great to have a winrate for this indicator :C
Stratifx
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@ACryptoMore, Best thing to do is backtest! there are some on here that = to 45% on a 1.7 RR